Department store group Debenhams has secured an additional £50m of funding that will enable it to trade at full-tilt over the vital Christmas period, Retail Week can reveal.
Debenhams raised the cash through various existing lenders on similar terms to the £200m provided in March this year, when creditors took control of the embattled retailer in the hope of enabling it to trade its way back to recovery.
Debenhams chief executive Stefaan Vansteenkiste said the funding would position Debenhams well over the golden quarter.
He said: “We are delighted that our investment consortium has reaffirmed its commitment to the business by making available additional financing support for our peak trading period.
”We are in a strong position to continue to invest in marketing and new product initiatives as we prepare for the important Christmas season.”
Debenhams hit the buffers earlier this year as it, like other department store groups, struggled to adapt to the changing retail landscape. Debenhams went through a CVA, under the terms of which it will close 50 stores in the coming years as it focuses on locations where it can trade profitably and bolster its multichannel appeal.
The retailer said in August it would seek extra funding to sustain it over the Christmas period.
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