Following their reluctance to comment earlier this week on Debenhams' discussions of store closures, Sergio Bucher, boss, has now released the companies annual financial records.
It has been posted that in September, £491.5m was lost, compared to £59m profits the year before. 50 stores are confirmed to be closed, though we are not able to know which stores these are - as of yet.
Bucher explained how some of the stores which will be closed, are currently contributing positively for the group, though they do not see them as profitable for the future. 400 jobs are at risk, though a minimum amount of compulsory redundancies is hoped for.
Debenhams have been going revamping stores, to try and better its fortunes in the struggling retail conditions. New experiences which include beauty treatments and Prosecco bars have been introduced to the redesigned stores.
Chief of retail economics, Richard Lim, says that department stores are a challenge to run, due to their high expenses. ''The combination of too much space, inflexible leases and spiralling operating costs are set against a backdrop - an accelerating behavioural shift towards online and experiences. This is eroding their profitability and changes in the business need to occur at a pace of they are to survive.''
Earlier this month, it was brought to our attention that Insurance provider, Atradius, had cut their cover they provide to Debenhams' suppliers.
The planned closures are said to be a part of their emergency £100m cost-cutting plans.
This news is unsurprising, as we watch the likes of House of Fraser and New look, among other retailers, struggle. Debenhams have now fallen into the trap too - can Debenhams and their major losses be rescued?