Debenhams sale process fails to secure bids, lenders keep control

The consortium of investors that now owns Debenhams has announced it will retain ownership of the department store chain after its administrators rejected all takeover bids.

The consortium, called Celine, said Debenhams administrators did not consider the bids to be “at the level required to be taken forward.'' Celine took control of Debenhams in April following several unsuccessful approaches by Mike Ashley’s Sports Direct.

"I am pleased that our new owners have confirmed their commitment to Debenhams and remain supportive of our plans to restructure the business,” Terry Duddy, executive chairman of Debenhams, said in a statement. “We are confident that we will receive support for our CVA proposals, which make sense for all parties, and will give us the platform to deliver a turnaround."

Stefaan Vansteenkiste, chief revenue office representing Celine, added: “The investor consortium is a committed long-term owner, which has provided Debenhams with 200 million pounds in fresh funding for the financial restructuring process and to fund the company's operating turnaround. Within the consortium, there is extensive turnaround experience, which we will deploy to support the management's plan and to position Debenhams for a long-term successful future."

Debenhams fell into administration on 9 April and was taken over by its lenders in a pre-pack deal which wiped out its shareholders’ investments in the company, including Sports Direct owner Mike Ashley’s near 30 percent stake.

Last week, Debenhams named the 22 stores it plans to close early next year as part of its proposed CVA, affecting 1,200 jobs. The retailer said it plans to close a total of around 50 of its worst-performing stores but has not yet named the others.

Photo credit: FashionUnited