Department store group Debenhams has announced plans to cut debts by raising £323m from a share sale.
The retailer, which has debts of £900m, said the money generated from the sale of new shares will be used to reduce its net debt and enhance its ability to refinance in the future.
The cash will also be used to help fund expansion plans and to "pursue opportunistic acquisitions of retail assets" that may emerge during the recession .
Debenhams reported that like-for-like sales excluding VAT dropped 0.8 per cent n the 12 weeks to 23 May, but added that the average transaction value was 3 per cent higher than the same period last year.
Chief executive Rob Templeman described current trading at the 144 UK and Ireland stores as 'robust', given the challenging nature of the market.
He said: "Although the outlook for consumer confidence for the remainder of the financial year is uncertain, given the performance of the business so far this year, at this time the board remains confident in the trading strategy."
Debenhams To Cut Debts Through Share Sale
Fri, 05 Jun 2009
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