Debenhams plc - Administrators appointed to Debenhams plc
9 April 2019
FOR IMMEDIATE RELEASE
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION. THIS ANNOUNCEMENT CONTAINS PRICE SENSITIVE INFORMATION
Administrators appointed to
Underlying business has access to
· Administrators have been appointed to
· The underlying Group operating companies (the "Group") are unaffected and all businesses are continuing to trade as normal.
· The Group's commercial relationships with suppliers, employees, pension holders and customers are all with the operating companies. Therefore, none of these stakeholders are adversely impacted by the administration.
· The plc Administrators have immediately sold all of plc's ownership of the Group to a newly incorporated company controlled by the Group's secured lenders in a pre-packaged sale (the "Transaction").
· The Transaction delivers continuity for all Group operations and was in the best interests of the Group's creditors, employees, customers, pension holders and suppliers.
· Under its new ownership, the Group will have available to it significant additional funding in line with the
· The Group will continue to implement the restructuring of its operations, including optimising the store portfolio (in line with plans already communicated) to improve trading performance and deleverage the business.
· Trading in the shares of the plc has been suspended since
Appointment of Administrators
Background to the Administration
The plc announced on
As announced on
The Administrators concluded that the Transaction was in the best interests of the plc's creditors. Furthermore, it minimises business disruption and provides ongoing access to funding, ensuring continuity for the Group's operating businesses, lenders, suppliers, employees, pension holders and customers.
Next steps for the plc
The Transaction included provisions for a Group sale process to be launched immediately. The recovery, if any, to the plc's shareholders will depend upon the outcome of the sale process which must see full repayment of the Group's debt. At this stage we do not expect that there will be a distribution to the plc's shareholders.
The suspension of the plc's ordinary shares from listing on the premium segment of the Official List of the
Prior to the administration, on
Next steps for
The Group has undertaken a thorough review of its store estate in the context of the current and future retail environment and plans to proceed with a restructuring of the estate that, if approved, will result in a significant overall reduction in the Group's rent burden and underpin a sustainable future for the Group. This is a critical component of the Group's restructuring plan, and executing this is in part linked to the provision of the
"It is disappointing to reach a conclusion that will result in no value for our equity holders. However, this Transaction will allow
"In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that
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Media - FTI Consulting
020 3727 1000
Director of Investor Relations
020 3549 6304
020 7404 5959
A copy of this announcement will be made available on
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