Debenhams Sales Drop by 12%
Friday, March 8, 2019
Troubled retailer Debenhams have been issues a profit warning as sales continue to plummet and explained that their statement about being on track to deliver profits and meet expectations back in January 2019 is no longer valid.
In February they had received a £40 million lifeline from lenders to keep them going as the company continued discussions about a longer-term refinancing scheme. It is in the hope to restructure their balances and continue constructively.
Debenhams are planning to close 50 stores on the high street, putting 4,000 jobs at risk but believe this will help bring the company to the best outcome possible.
However, sales have improved slightly since the middle of January but are still dangerously on the decline with a 5% fall in gross transaction value and having their like-for-like sales down by 4.6%. It is said that there is an £80 million ‘cost-saving’ programme on way.