Wed, 02 Sep 2020 | BUSINESS SALE
The deadline for bidders to submit their offers for department store chain Debenhams passed yesterday, with the future of the business remaining uncertain. Investment bank Lazard, which is running the sale process, had set a deadline of 5pm on September 1 2020 for bidders to make an offer for the company, as it sought to gauge interest in the business.
Administrators FRP Advisory that a deal for Debenhams can be reached by the end of September, otherwise the retailer will explore other options. FRP has reportedly lined up Hilco Capital to oversee a liquidation of the business if all other options fail. This would involve all stores shutting, with all stock and assets sold.
Debenhams’ current owners, a private equity consortium of banks and lenders known as Celine, are reportedly keen on a restructuring that would allow them to remain in charge.
Debenhams employs around 12,000 staff and has already made some of the biggest job cuts on the UK high street during the coronavirus crisis, with 6,500 job cuts in total so far. The company has also closed around 20 stores and has reportedly not been paying rent, rates or suppliers as it struggles with a debt pile thought to total around £600 million.
The retailer went into administration for the second time in a year in April, as it looked to protect itself from creditors, before launching a sales process at the end of July. However, the retailer is said to have performed beyond expectations since some stores began reopening in June and is not currently thought to be in a position where it needs to borrow money.
Prospective buyers have reportedly been issued with a pitch outlining an “illustrative scenario” which would see have of Debenhams’ estate liquidated, leaving it with 60 stores. The document forecasts that this could result in profits of £90 million for the year ending February 2022.
Reported interested parties include Next, Mike Ashley’s Frasers Group and a Chinese consortium. Frasers Group Head of Elevation Michael Murray said the company was interested in acquiring Debenhams on a store-by-store basis, but would only consider stores that could see floors split between Frasers Group’s Sports Direct and Flannels business.
It is said to be unlikely that a single buyer would be interested in buying all of Debenhams, with most prospective bidders interested in acquiring some of Debenhams’ brands or a parcel of stores.
View the latest distressed UK businesses here.
This well-established business supplies a wide range of plumbing and heating products and offers bathroom installations and maintenance services, serving both trade customers and the public. With a strong reputation and a diverse client base spanning...
LEASEHOLD
Exceptional opportunity to acquire a well-established and highly regarded car showroom in Cheshire, ideal for automotive enthusiasts or investors seeking a prestigious market position.
LEASEHOLD
Opportunity to acquire a well-established provider of ongoing plant displays to commercial clients in London, with a strong reputation built over two decades.
WORK FROM HOME
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.