Debenhams’ parent company has drafted in advisers as it prepares to enter administration, just months after the department store chain collapsed for the second time in a year.
Celine, the group controlled by Debenhams’ lenders, only took control in April last year when the retailer tumbled into administration for the first time.
Celine, which is the issuing entity of £200m Debenhams notes due in 2021, has called in advisers from FRP Advisory, according to The Telegraph.
Its potential administration would not impact Debenhams sales, staff, customers or suppliers, sources insisted.
The revelation will, however, land a fresh blow to the business as it seeks to revive its fortunes.
Debenhams is already working with advisers at Lazard as it seeks new owners.
And last week it appointed experts at Hilco, a specialist in winding up struggling retailers, to draw up a series of plans including liquidating stock.
Sources said this was a contingency measure in the event that a rescue deal could not be secured.
Earlier this month, Retail Week revealed that Debenhams was culling 2,500 jobs as part of its ongoing cost-cutting plans as the chain grapples to emerge from the coronavirus crisis.
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