Debenhams is bracing itself for a boardroom coup after more of its biggest investors backed City stockbroking firm Cenkos Securities.

Debenhams is bracing itself for a boardroom coup after more of its biggest investors backed City stockbroking firm Cenkos Securities.

As previously reported, the broker is attempting to spark an investor rebellion to oust the department store retailer’s top bosses.

Cenkos has approached some of the department store’s largest shareholders about deposing Debenhams chairman Nigel Northridge, in a move that could also pave the way for the replacement of chief executive Michael Sharp.

A trio of key investors – Milestone Resources, Schroders and Old Mutual – are all said to have teamed up with Cenkos, according to The Sunday Times.

Between them, the three groups own around 25% of Debenhams issued share capital.

Debenhams has endured a tough few years following a dip in consumer spending, increased high-street competition and a reliance on promotional activity to bring in sales.   

It has now started to pull back from promotions, strengthen its online offer and add concessions to make better use of store space.

Earlier this year, Debenhams revealed that like-for-like sales remained flat as promotional changes “diluted sales” in its third quarter ending June 13.

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.