DSGi has issued a statement on the London Stock Exchange saying that no decision has been taken on whether it will undergo a rights issue.

The statement by DSGi follows reports that it is gearing up to raise several hundred million pounds from shareholders by issuing new equity.

According to the Financial Times, sources said that the electricals retailer was able to complete its three-year turnaround plan spearheaded by chief executive John Browett, but that it was considering whether to accelerate the plans with a rights issue.

The retailer is believed to have the support of its banks and enough resources to complete the plans which include a £320m revamp of its store estate and improvements to customer service.
The retailer is set to update on the future of its stores in Central Europe at the end of the financial year.

The news followed the decision to close 27 stores in its Nordic division, as revealed by Retail Week last week.

DSGi said in the statement: “DSGi regularly reviews its capital structure relative to its medium term operational and strategic plans. No final decision on any course of action has been taken”.