Debenhams Holds Back on Flotation

Debenhams has ruled out an early return to the stock market as it continues to outperform the sluggish retail sector. Debenhams has reported comparative sales growth at its 116 outlets of 2.7 per cent during the 13 weeks to the end of February. Half-year trading profits were up 64 per cent to £152m. CVC Capital Partners, Texas Pacific Group and Merrill Lynch Global Private Equity chain, the three private equity owners who backed Debenhams' £1.7bn buyout in 2003, are apparently in no hurry to recoup their investment, despite speculation that a float is on the agenda.

Chief executive Rob Templeman said: "Debenhams has done so well since we bought it that we can now look at all the options. There are no plans for an IPO."

Templeman told journalists the chain has taken share from rivals including Next and Marks & Spencer, with the Designers at Debenhams ranges performing particularly well. He said: "We have the right product and the right marketing. Consumers are more brand- and designer-conscious than they have ever been."Designers Betty Jackson and Nigel Cabourn have joined the range.

The group revealed that it paid £34m for the eight Allders stores acquired from the administrators in February, with another £18m is to be spent rebranding the stores.