Debenhams may close a further 40 stores

Debenhams may close a further 40 stores

Debenhams is reportedly planning to close 90 stores, according to the Daily Telegraph.

The struggling department store may axe 10,000 jobs as the chain battles against plunging profits and sales.

Shares in the group have fallen 90% over the past year and the chain reported a £491.5 million loss in October.

The department store already planned to close 50 stores over a five-year period, which was announced in November. A further 40 stores may be planned to close, which should “address the structural challenge and drive profitable growth”.

The news comes just days after scandal amid the board, where Mike Ashley voted against the chief executive and chairman of Debenhams, who were both ousted. 

“The board believes that it is in the best interests of Debenhams plc that the executive team remains fully focused on delivery of the plan. In the meantime, the board remains open to constructive suggestions from shareholders that are in the interests of the business as a whole,” said the group in a statement.

Sports Direct (LON: SPD) owns almost 30% of shares in Debenhams.

Shares in the department store (LON: DEB) are down 7.57% (1102GMT).