Debenhams sees M&G withdraw CVA court action
Debenhams has announced that M&G Real Estate has withdrawn a court action against its CVA.
The department store said in a statement that the decision was reached following “positive, constructive discussions”.
Debenhams added: “The CVAs are a vital step for Debenhams as it restructures to adapt to the changing retail environment, and will provide a platform for the sustainable future growth of the business. The CVAs will benefit all Debenhams’ stakeholders, including landlords, and this is a vital step in preserving as many as possible of the jobs of the 25,000 people who work for Debenhams.”
The proposals have been supported by the majority of the company’s creditors but challenges remain from Sports Direct and Combined Property Control.
Debenhams argues that the challenges are without merit and should be dismissed.
Terry Duddy, Debenhams chairman, said: “I am pleased that M&G has recognised the necessity for the CVAs and that as a result of the discussions we have had, it has withdrawn its challenge. I call on Sports Direct and CPC to do the same. If they do not, we will seek to have it thrown out. In the meantime, we continue to make good progress with the company’s restructuring plans.”
