Debenhams eyes up to 90 job cuts in cost saving drive

DEBENHAMS will slash up to 90 jobs as the struggling department store chain pursues cost savings across its fashion and home departments.

The ailing retailer has launched redundancy talks with around 200 workers in the latest phase of its costcutting drive. It follows plans to axe 320 store management jobs in a similar move to supermarket chains Morrisons, Sainsbury’s and Tesco.

In a statement, Debenhams said: “We announced our intention to restructure our organisation around three business units: beauty and beauty services, fashion and home, and food and events earlier this year. Our work to create a simplified and consistent structure across these units, reducing complexity and driving efficiency in order to deliver our Debenhams Redesigned strategy, is continuing.”

Sergio Bucher, the chief executive, is attempting to shore up the retailer’s finances by securing £10m of cost savings during this financial year and £20m extra annually.

The company was hit with a credit rating downgrade by Moody’s at the beginning of the month after issuing a string of profit warnings this year. Debenhams is forecasting pre-tax profits of £35m to £40m, down from £59m last year. The drop is partly due to like-for-like sales, which strip out the impact of new stores, slumping 2.1pc in the 41 weeks to June 16.

It has also sought to reassure the City that it is in good financial health after credit insurer Euler Hermes reportedly reduced cover amid concerns over its ability to pay bills in full.