Debenhams has extended payment terms to its suppliers as it continues to be hit by unrelenting tough trading on the high street, according to weekend reports.

The department store chain extended payment terms to 96 days according to reports, but denied that it was facing an emergency rights issues.

On Friday Debenhams’ share price took a battering with almost 18 per cent wiped off their value. An analyst note from Piper Jaffrey set a target price of just 17p for the stock.

Sources told the Sunday Times that like-for-like sales have been down as much as 9 per cent in recent weeks.