Debenhams is planning to axe at least 90 jobs, with up to a total of 200 jobs at risk.
The struggling retailer is entering talks with employees in its fashion and home departments about potential cuts that will likely affect up to 90 employees.
“Our work to create a simplified and consistent structure across these units, reducing complexity and driving efficiency in order to deliver our Debenhams Redesigned strategy, is continuing,” said a spokesperson for the group.
In June, the Debenhams issued its third profit warning in 2018 and is attempting to cut costs fast to avoid falling into administration.
Following the purchase of House of Fraser by Sport Direct’s (LON: SPD) Mike Ashley, there has been growing speculation of a merger between House of Fraser and Debenhams.
Ashley vowed to transform House of Fraser into the Harrod’s of the High Street after the £90 million buyout last week.
George Wallace, chief executive of MHE Retail, was not convinced this would be too easy.
“The level investment that’s required in those stores to get to a standard where the likes of Gucci and Prada would be prepared to be present is really a massive amount, bearing in mind the size of the stores. Selfridges and Harrods have poured in hundreds of millions of pounds to create an environment supportive of a luxury product,” he said.
“The concept of big department stores in mid-size towns is under serious threat and past its use-by date. Having a luxury department store in a provincial city is not commercially viable.”
Shares in the department store (LON: DEB) are currently trading down 9.26 percent at 12.44 (1609GMT).
