Debenhams looks for further rent cuts
Debenhams may have had a huge cash injection and have achieved rent cuts already, but it seems it’s not enough and the troubled department stores chain is seeking further rent reductions.
It’s looking for cuts of up to 25% at 20 of its stores (depending on the particular circumstances of each store and its landlord) and will scrap break clauses in the leases of those stores in exchange. It’s also looking to lower the service charges on the sites in question.
It’s a further sign of how fragile the UK retail sector is at present and how even the big names are struggling under the weight of costs.
The company went into administration in April 2019 and its restructuring saw the announcement of more than 20 store closures and rent cuts of up to half on another 105 stores. The company had also received a giant cash injection but borrowed another £50 million a few months ago.
It will close 22 stores in January with another 28 also set to shut, but not until 2021.
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