Debenhams is facing a boardroom coup as City stockbroking firm Cenkos Securities attempts to spark an investor rebellion.

Debenhams

Cenkos has approached some of the department store’s largest shareholders about deposing Debenhams chairman Nigel Northridge, according to The Sunday Times.

The deposition of Northridge could pave the way for the replacement of Debenhams chief executive Michael Sharp.

The attempted coup has reportedly been met with mixed reactions and one investor told The Sunday Times Sharp was doing an “adequate job” and claims the plan has come about because Cenkos is interested in Debenhams’ broking mandate.

Debenhams is facing the potential coup after a few years of weak trading as a consequence of fierce competition on the high street and a reliance on promotional spending.

It has now started pulling back from promotional activity in order to help boost prices.

In its third quarter ending June 13 Debenhams revealed like-for-like sales remained flat as promotional changes “diluted sales”.

However, the flat like-for-like performance was ahead of analyst expectations, who had forecast a decline of 1%.

Sharp said Debenhams had a “strong platform from which to deliver long-term sustainable growth”, with five new stores poised to open in the autumn.