Debenhams mulls 125 million pound refinancing under new management
Credits: Courtesy of Debenhams Debenhams Group, formerly Boohoo Group, has said it is considering the refinancing of a 125 million pound revolving credit facility as it continues to embark on a transformation under a new management team. A spokesperson for the fashion group told FashionUnited: “Having become Debenhams Group, we are currently at the early stages of evaluating our financing arrangements to ensure they best support our capital-lite, stock-lite, marketplace strategy. “In December, we paid back 97 million pounds of debt and we are now considering the refinancing of our 125 million pound revolving credit facility, well ahead of its term ending in October 2026. “Debenhams is back and under a new management team it is right for us to assess the ideal financing structure to underpin our ambitious growth plans.” An initial report by the Telegraph suggested that Debenhams had also been in discussions regarding the pursuit of the high yield market for 50 million pounds of the proposed total, which would bring the debt package to 175 million pounds. The decision to begin mulling a refinancing comes despite the company’s current 125 million pound revolving credit facility being due in October 2026, meaning there is seemingly no urgency to enact such a move. It has, however, set out to seek backing for “ambitious plans” under its new business model. The company announced its rebranding in March, and received majority approval from shareholders in the preceding weeks. It opted to undergo a shift into the Debenhams Group after the multibrand retailer of the same name managed to follow through on what the company said had been a successful turnaround and repositioning. Debenhams is now assessing financing options via a wide range of potential debt investors, including current lending banks, to seek out the best terms. The “standard” refinancing is thus currently in the preliminary stages.
Debenhams Group, formerly Boohoo Group, has said it is considering the refinancing of a 125 million pound revolving credit facility as it continues to embark on a transformation under a new management team.
A spokesperson for the fashion group told FashionUnited: “Having become Debenhams Group, we are currently at the early stages of evaluating our financing arrangements to ensure they best support our capital-lite, stock-lite, marketplace strategy.
“In December, we paid back 97 million pounds of debt and we are now considering the refinancing of our 125 million pound revolving credit facility, well ahead of its term ending in October 2026.
“Debenhams is back and under a new management team it is right for us to assess the ideal financing structure to underpin our ambitious growth plans.”
An initial report by the Telegraph suggested that Debenhams had also been in discussions regarding the pursuit of the high yield market for 50 million pounds of the proposed total, which would bring the debt package to 175 million pounds.
The decision to begin mulling a refinancing comes despite the company’s current 125 million pound revolving credit facility being due in October 2026, meaning there is seemingly no urgency to enact such a move. It has, however, set out to seek backing for “ambitious plans” under its new business model.
The company announced its rebranding in March, and received majority approval from shareholders in the preceding weeks. It opted to undergo a shift into the Debenhams Group after the multibrand retailer of the same name managed to follow through on what the company said had been a successful turnaround and repositioning.
Debenhams is now assessing financing options via a wide range of potential debt investors, including current lending banks, to seek out the best terms. The “standard” refinancing is thus currently in the preliminary stages.
