STOCKBROKERS have welcomed a £323m rights issue by department store group Debenhams in a bid to cut debts and provide capacity for “opportunistic acquisitions” during the downturn.
Matthew McEachran of Singer Capital Markets said in response to the issue and a trading update issued yesterday: “Our conclusion remains positive.”
The chain, which opened a flagship store in the £1bn Liverpool One shopping complex last May, was expected to announce a cash call in a bid to reduce its £927.2m debt mountain.
A trading update for the 12 weeks to May 23 also revealed that gross transactions have risen by 3% compared with the same period last year, while like-for-like sales were down by 0.8% – both figures were better than anticipated.
Chief executive Rob Templeman said: “The board remains confident in the trading strategy and the outturn for the full year.”
