Debenhams to close 50 stores as retailer continues to struggle
The 240-year old establishment had posted its biggest loss in its history
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 (Dh2.37 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 £512.4m relating to leases and goodwill, leading to a statutory loss of £491.5m, the biggest in its 240-year old history.
Underlying pre-tax profit for the year to September 1 slumped 65 per cent to £33.2m, a result that Mr 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.
Updated: October 25, 2018 02:18 PM