Debenhams Group, formerly the Boohoo Group, is reportedly in discussions over a debt refinancing package worth as much as £175m.
The fashion retailer has held talks about tapping high yield market for £50m of the proposed total, and to have held discussions with several asset-backed lenders, according to The Telegraph.
It is expected the remaining £125m being targeted will come from refinancing an existing two-year loan which the brand took out last October.
At the time, major shareholder Mike Ashley described the loan as “the worst refinancing deal that a public company has done in living memory”.
A spokesman for Debenhams Group said: “Having become Debenhams Group, we are currently at the early stages of evaluating our financing arrangements.
“In December we paid back £97m of debt and we are now considering the refinancing of our £125m revolving credit facility, well ahead of its term ending in October 2026.
“Debenhams is back and under a new management team it is right for us to assess the ideal financing structure to underpin our ambitious growth plans.”
Boohoo rebranded to Debenhams Group in March and appointed Dan Finely as group chief executive with the remit of shifting the entire businesses’ model.
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