Department store chain Debenhams could be sold to new owners amid efforts to exit administration.
The retailer is understood to have appointed investment bank Lazard as it explores a number of options for its future –including a search for a new owner.
The statement from the firm said: “Now that Debenhams has 124 stores in the Ƶ open and is trading ahead of expectations, the administrators of Debenhams Retail Ltd have initiated a process to assess ways for the business to exit its protective administration.
“There are a range of possible outcomes which could include the current owners retaining the business, potential new joint venture arrangements (with existing and potential new investors) or a sale to a third party, and the administrators will be guided by what delivers the best outcome for creditors.”
The announcement comes three months after Debenhams called in administrators for a second time in a year, enlisting FRP Advisory to work with management under a “light touch” administration, which continues to see directors in control of the group rather than administrators.
A Chinese consortium is among potential investors, according to reports, while other bidders could include billionaire Newcastle United owner Mike Ashley, who owns rival House of Fraser. Debenhams has already rejected previous attempts by the Frasers group owner to buy the business.
The chain has already closed a number of stores.
When the chain appointed administrators again in April it closed seven outlets, in Truro, Stratford-upon-Avon, Salisbury, Westfield in West London, Warrington, Leamington Spa and South Shields.
The following month, after failing to reach a deal with landlords Hammerson, it also announced the closure of stores in the Bullring in Birmingham, The Oracle in Reading, Centrale in Croydon, Highcross in Leicester and Silverburn in Glasgow.
Then last month, it confirmed it had been unable to agree rent with landlords Intu, meaning three stores at Intu centres – at Gateshead Metrocentre, Watford and Milton Keynes – would not be reopening after June 15, after the government allowed non-essential retailers to open again following the Covid-19 lockdown.
Debenhams was struggling way before the coronavirus pandemic, dealing with debts of £600m.
When it went into administration in April 2019 it wiped out its shareholders, including billionaire retail entrepreneur Mike Ashley, and transferred ownership to a group of financial investors.
Other department store chains are also suffering, with John Lewis announcing it will close eight of its 50 stores putting 1,300 jobs at risk, and Marks & Spencer confirming it is cutting 950 jobs.
