Debenhams, the department store chain, has asked advisers to explore restructuring plans that could lead to store closures, as the downturn engulfing the UK high street continues to spread.
KPMG is investigating turnround options that may also include it asking creditors to accept a compulsory voluntary arrangement, said a person with knowledge of the matter.
A CVA is a type of insolvency that allows ailing businesses to restructure their debt payments. Landlords often suffer rent reductions or store closures but other parties that do business with the company involved, such as stock suppliers and banks, do not automatically lose money.
The move by Debenhams comes just one month after House of Fraser, another stalwart UK department …
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