Debenhams mulls cash injection

Tuesday, 30 December 2008 11:22

Debenhams is the latest retailer to fall under the magnifying glass after reports it is looking for cash to cut its debt.

The Financial Times reports the department store is considering raising equity capital to cut its debts.

Plans are set to be discussed at the firm's next board meeting in January, with the FT reporting members of retailer's board are uneasy about the levels of debt.

At the end of August, Debenhams' debt stood at £994.0 million.

However, there is no suggestion Debenhams is joining the long list of retailers that are being forced to call in administrators as the recession cuts high street spending.

Over the weekend it was revealed children's clothes specialist Adams could soon call in the administrators, following chains Zavvi, Woolworths, Whittard of Chelsea, The Officers Club and MFI, which have all recently gone into administration.

Scottish fashion store USC also yesterday went into administration. However, a deal with Dundonald Holdings sees 43 of the firms 58 stores bought up and maintaining 1,120 jobs.

This morning, the Debenhams' share price fell 3.92 per cent to 24.50p.

• Tags:
• investment advice
,
• news