Debenhams Group addresses speculation over debt facility

Debenhams Group – formerly Boohoo Group – has addressed speculation regarding a possible new debt facility, clarifying the nature of its financial plans.

In a regulatory filing, the retailer confirmed that it has in place an existing 125 million pound revolving credit facility which does not expire until October 2026.

Debenhams further stated that it continues to review its debt facilities, “in the ordinary course of business”. The company will provide “any further updates as appropriate”.

It did not elaborate further on whether it was seeking further financing, as had been speculated.

Debenhams’ comment comes after Sky News reported that the company was nearing a 175 million pound refinancing deal with its former owner, US investment firm TPG.

The media outlet said the company was in advanced talks with the firm, yet precise details of the alleged deal, including size of the package, were not currently clear.

If such an agreement is reached, it would steer Debenhams further away from Frasers Group, which has long attempted to garner control over the retailer.

Frasers’ own founder Mike Ashley offered Debenhams financial support in debt refinancing in June after increasing its stake in the company to 28 percent during the month prior.