Facing difficulty with suppliers in the run-up to Christmas, Debenhams shares tumbled 21% towards the end of Wednesday.
The department store faced its biggest ever one-day fall recorded in over ten years.
Last month, when revealing poor financial results the group announced plans to carry out 50 store closures and a turnaround plan.
As retailers are facing difficulty, suppliers are reported to be turning against Debenhams. Fears were raised after suppliers took a financial hit following the collapse of House of Fraser.
A supplier told Drapers Magazine: “They owed us so much money at any one time, we decided it was too risky.”
“It’s not worth it. I know other suppliers are nervous about going forward with Debenhams, [and] we were in the same boat. It could be a disaster for them.”
A Debenhams spokesperson said: “Many suppliers don’t use credit insurance. Those that have used it historically are well aware of the current situation and work with retailers to manage things accordingly. Debenhams is well stocked for Christmas.”
In the department store’s annual results last month, Debenhams posted the biggest financial loss in its 240-year history.
Amid the rising prices, fall in the pound and Brexit uncertainty, many retailers have collapsed this year resulting in the loss of 85,000 jobs.
Toys R Us, Maplins and Poundworld have all collapsed into administration this year whilst Mothercare (LON: MTC), Homebase and New Look have carried out CVAs and closed stores in the UK.
Shares in the group (LON: DEB) are currently trading -9.43% at 4.77 (1052GMT).
