Debenhams PLC (LON:DEB) is looking to cut up to 200 more jobs in the latest phase of the struggling department stores chain’s restructuring plans as it tries to counter House of Fraser (PRIVATE:HOF) merger rumours.
The FTSE 250-listed firm has seen its shares jump over the past week since Mike Ashley’s Sports Direct International PLC (LON:SPD) – which owns a 30% stake in Debenhams – acquired rival House of Fraser out of administration. In late afternoon trading on Friday, Debenhams shares were 5.6% higher at 13.03p.
READ: Debenhams issues another profit warning but expects improvement next year
In a statement, Debenhams said: "We announced our intention to restructure our organisation around three business units: Beauty & Beauty Services, Fashion & Home and Food & Events earlier this year.
"Our work to create a simplified and consistent structure across these units, reducing complexity and driving efficiency in order to deliver our Debenhams Redesigned strategy, is continuing."
Debenhams’ chief executive Sergio Bucher announced an overhaul of the firm last year - closing stores, cutting managerial jobs and scrapping product lines - to try and increase online sales, improve stock control and make better use of its large stores.
Debenhams issued its third profit warning of 2018 amid continued intense competition on the high street that led to House of Fraser to unveil plans to close more than half its stores.
House of Fraser's new owner, Sports Direct said this week that it aimed to keep 80% of the retailer’s stores open, but given the firm’s big stake in Debenhams, rumours have understandably emerged about a possible merger of the two underperforming chains.