Debenhams for sale in bid to exit administration
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 UK 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.
It has eight stores in Wales, in Cardiff, Carmarthen Newport, Bangor, Llandudno, Llanelli, Swansea and Wrexham.