Debenhams executive chair Terry Duddy will step down next month as its owners prepare to appoint a new chief executive.

The embattled department store chain will name turnaround specialist Stefaan Vansteenkiste as its new boss later today, according to Sky News.

Vansteenkiste was drafted in by Debenhams in April to take on the role of chief restructuring officer but is poised to take the reins from Duddy next month.

Vansteenkiste made his name at corporate recovery firm Alvarez & Marsal and recently served as interim head of Intertoys, which operates 500 stores in Europe.

Debenhams declined to comment on the impending appointment. 

The department store business collapsed in April, falling into the hands of its lenders and leaving shareholders, including Sports Direct tycoon Mike Ashley, penniless. 

Its new owners, a clutch of banks that formed the investor consortium Celine, believe the retailer needs a turnaround expert at the helm to steer it through the crucial Christmas trading period.  

Celine had initially sought to sell the business but shelved those plans after failing to garner enough interest from potential bidders. Instead, it launched a CVA, which was given the green light in May, paving the way for it to shut 22 stores next year. 

However, that process is being challenged in the courts by one of Debenhams’ landlords, CPC, which lets six stores to the business.

Sports Direct dropped its legal dispute but is continuing to fund the CPC challenge. 

Last month, it emerged Debenhams was seeking a fresh £50m cash injection from lenders to get it through the golden quarter as it battles for survival.