Department store Debenhams is reported to be mulling axing its dividend and closing a raft of stores under emergency £100m cost-cutting plans.
The retailer, which will announce its annual results this Thursday, is understood to have identified around a third of its 166 stores to face closure, This Is Money has reported. Cutting shareholder payments will save the department store group around £30m.
Insurance provider Atradius cut the cover it provides to Debenhams’ suppliers at the start of this month. Debenhams has issued three profit warnings so far this year as it tackles “an exceptionally difficult market”.
Debenhams declined to comment on the report.