Terry Duddy is understood to have been lined up to take charge of Debenhams following the likely departure this week of chief executive Sergio Bucher.
Duddy, who is interim chairman of the department store chain, is said to be favourite to take the helm following last week’s prepack administration.
Bucher is expected to step down after pressure from Debebnhams’ new owners, including hedge funds Silver Point Capital and Golden Tree Asset Management, The Sunday Times reported.
A source close to Bucher said: “Having stayed on after the AGM and got the refinancing in place, Sergio thinks now would be the right moment to move on. The upcoming restructuring can then be led by someone offering a fresh start.”
Bucher has been with the struggling department store chain since 2016.
A spokesperson for Debenhams’ new owners said: “The investor consortium has provided Debenhams with £200m in fresh funding, which will see it through the restructuring process and be available to fund the company for the foreseeable future.
“Within the consortium, there is extensive turnaround experience, which we will deploy to support the management’s turnaround plan. We are pleased that now under new ownership, the business can look forward with confidence, and we intend to work closely with management and the board to position Debenhams for a long-term successful future.”
The restructuring of Debenhams could take up to two years, the Mail on Sunday reported.