Friday 18 October 2019

Share slump: Debenhams hit by latest profit warning

Debenhams
Debenhams

Eric Pfanner/Bloomberg

SHARES in Debenhams fell yesterday as the UK department-store chain scrapped its profit guidance, after saying talks with creditors will be more disruptive than expected.

It was the fourth profit warning since early 2018 for Debenhams, which confirmed plans to shut about 50 stores as it seeks a more comprehensive restructuring after securing a temporary lifeline.

Options could include issuing new shares, a debt-for-equity swap or insolvency procedures. Though sales stabilised slightly in recent weeks, an earlier prediction for profit in line with market expectations is no longer valid it said.

Irish Independent

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