Debenhams Group is in advanced talks about securing a £175m refinancing package with one of the companies behind the 2003 delisting of the former department store potentially involved, according to a Sky News report.
The retailer, formerly known as Boohoo Group, is lining up a deal with US private equity firm TPG.
TPG was part of the consortium that took Debenhams private in 2003. This was when the business was still operating as a department store chain.
The company was then relisted in 2006, carrying debt of £1.2bn. All 118 Debenhams stores closed in 2021 after Boohoo bought the brand and website for £55m.
Sky News said that precise details around the package still needed to be figured out as of Wednesday evening, including the size of the deal and how much TPG would contribute.
The Telegraph reported in May that Debenhams was seeking a package, including £50m from the high yield market.
The same newspaper also reported in June that Mike Ashley had written a letter requesting a meeting about becoming a lender to Debenhams Group. Frasers Group is Debenhams’ biggest shareholder.
Its rebranding from Boohoo to Debenhams was announced in March. An attempt to pass a resolution on the subject failed at a subsequent AGM after Frasers Group voted against the change.
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