Shares in embattled department store chain Debenhams (DEB) have crashed 14.7% to 10.9p following reports over the weekend that it is bringing in advisers to explore restructuring plans.
According to reports, KPMG is investigating turnaround options in a bid to save the retailer, prompting fears Debenhams could be the next to leave the high street.
Retailers have come under pressure from rising costs and squeezed disposable incomes, contributing to Debenhams’ three profit warnings this year.
The company has several options it can pursue under a compulsory voluntary arrangement, including rent negotiations, restructuring liabilities and closing stores.
The potential bad news comes in the wake of rival House of Fraser’s collapse, which was saved when Sports Direct (SPD), owned by Mike Ashley, stepped in to buy the business.
Debenhams could also be targeted by Sports Direct, which already has a stake of just under 30%.
Combining House of Fraser and Debenhams could help cut costs and create the opportunity to rethink the strategic direction.
Shares in Debenhams have plummeted 74% over the last year.
