Debenhams gets court approval to close stores and cut jobs

Debenhams has received U.K. High Court approval that will allow the company to shut stores and cut jobs, according to reports.

The company will go ahead with its plans for a company voluntary arrangement that will allow the company to close 22 of its least profitable stores and slash rents on more than 100 outlets.

The plans will put 1,200 jobs at risk across the department store chain.

"We are delighted the court has today confirmed that our CVA is effective and will continue to be implemented as planned," Debenhams's Chief Executive Officer Stefaan Vansteenkiste reportedly said after the ruling.

Debenhams got approval from 80% of its landlords for its restructuring plans after it was taken over by the people it owed money to.

But, some of the department store's landlords - including Mike Ashely's Sports Direct - objecting to the rent reductions the CVA included. (dpa)