Summer Sale boost for Debenhams
Healthy figures could trigger bid
July 22 2003
Debenhams has fired the starting pistol for potential bidders with a healthy trading statement showing the summer Sale has boosted business.
In the 20 weeks to July 19, the department store operator’s total sales were up 7.8 per cent, with like-for-like sales up 3.8 per cent. Over the past ten weeks including the first two weeks of the Sale, like-for-likes are up around 5 per cent.
Chief executive Belinda Earl said: “Debenhams continues to trade well and in line with our expectations. We are benefiting from the ongoing investment in our stores and the brand. Our womenswear business is on an improving trend with young fashion brands showing strong sales growth.”
Debenhams has been in talks over a potential bid with private equity firm Permira for several months. Last month it said it had also received a further approach, confirmed to have come from a consortium comprising CVC Capital Partners and Texas Pacific Group.
Permira is thought to have been waiting for today’s trading statement before making a formal bid. Debenhams said discussions are continuing with both potential bidders.
