Debenhams in turnaround talks

DEBENHAMS has called in advisers at KPMG to help with its turnaround plans.

The struggling department store chain is looking at options including a company voluntary arrangement, according to industry sources. This could allow it to close stores, ease debts and renegotiate rents

Five years ago, Debenhams boasted profits of £150m but half a decade of falling sales and heavy discounting has hurt margins. It has issued three profit warnings this year, axed around 400 jobs and closed two stores.

A spokesman for the company said: ‘Like all companies, Debenhams frequently works with different advisers on various projects.’