Debenhams’ sale process ended yesterday with no acceptable bids received as the department store’s creditors, investor consortium Celine, confirmed its commitment to the business.
Celine took control of Debenhams following a pre-pack administration in early April after a protracted battle with Sports Direct founder Mike Ashley, who was vying to take over the department store business.
A for-sale sign was hoisted over Debenhams by Celine but administrators determined that bids received were “not at the level required to be taken forward”.
Celine chief restructuring officer Stefaan Vansteenkiste said: “The investor consortium is a committed long-term owner, which has provided Debenhams with £200m in fresh funding for the financial restructuring process and to fund the company’s operating turnaround.
“Within the consortium, there is extensive turnaround experience, which we will deploy to support the management’s plan and to position Debenhams for a long-term successful future.”
Debenhams executive chairman Terry Duddy said: “I am pleased that our new owners have confirmed their commitment to Debenhams and remain supportive of our plans to restructure the business. We are confident we will receive support for our CVA proposals, which make sense for all parties, and will give us the platform to deliver a turnaround.”
Debenhams’ creditors are expected to vote on its proposed CVA today.