Debenhams to close 50 stores as posts biggest loss in 240-year history

Debenhams to close 50 stores as posts biggest loss in 240-year history

The British retailer, which has issued three profit warnings this year, took exceptional charges of £512.4 million relating to leases and goodwill, leading to a statutory loss of £491.5 million, the biggest in its 240-year old history.

British retailer Debenhams has posted its biggest loss in its 240-year old history. (Bloomberg pic)
LONDON:
Struggling department store chain Debenhams is closing 50 of its underperforming stores, affecting around 4,000 job, as write downs in the value of its business led to a record full-year loss of nearly £500 million (RM2.66 billion)

Chief Executive Sergio Bucher said he was “taking decisive steps to strengthen Debenhams” in a challenging market.

“We are taking tough decisions on stores where financial performance is likely to deteriorate over time,” he said on Thursday.

The British retailer, which has issued three profit warnings this year, took exceptional charges of £512.4 million relating to leases and goodwill, leading to a statutory loss of £491.5 million, the biggest in its 240-year old history.

Underlying pretax profit for the year to Sept 1 slumped 65 percent to £33.2 million, a result that Bucher said reflected “a tough year for retail”.

He told BBC radio that the number of jobs losses from the store closures over the next three-to-five years had not been quantified.

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