Struggling retailer Debenhams has secured an additional £40m credit facility as it continues talks with lenders to secure its financial future.
The new agreement will act as a bridge as it continues its operational improvements to support the business transformation plan.
Debenhams has also signed an agreement with supply chain partner Li & Fung to develop a strategic sourcing partnership.
This agreement is expected to cover a material part of the retailer’s own-brand sourcing and is expected to deliver benefits to both customers and stakeholders, through improved product quality and lead-times, higher achieved margins, and better working capital efficiency.
Initial orders under the agreement are expected to commence shortly.
“Today’s announcement represents the first step in our refinancing process,” commented Sergio Bucher, Debenhams CEO.
“The support of our lenders for our turnaround plan is important to underpin a comprehensive solution that will take account of the interests of all stakeholders, and deliver a sustainable and profitable future for Debenhams.
“In addition, the partnership agreement we are announcing today with Li & Fung will be a key part of our turnaround plan. It gives us access to state-of-the-art technology in the LF Digital platform, providing end-to-end visibility across our supply chain.
