Debenhams confirms further job cuts

The FTSE 250 group, which has seen merger speculation boost its shares since rival House of Fraser was acquired by Sports Direct last Friday, has begun redundancy talks with workers.

In a statement, Debenhams said: “We announced our intention to restructure our organisation around three business units: Beauty & Beauty Services, Fashion & Home and Food & Events earlier this year.

“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.”

Job cuts were reported to be around 100 in the Telegraph, 200 in the Guardian and “hundreds” in the Daily Mail.

Chief executive Sergio Bucher, the former Amazon executive, announced an overhaul at Debenhams last year designed to increase online sales, improve stock control and make better use of its large stores. He said the “exceptionally difficult times in UK retail" were not expected to change in the near future.

As performance has waned he has closed stores, cut managerial jobs and scrapped product lines that did not sell, with Debenhams' third profit warning of 2018 in June coming amid a continued squeeze on consumers household finances and intense competition on the high street that led to rival House of Fraser's plans to close more than half its stores.

Bucher announced cuts to capital expenditure to shore up the company's finances, with cost cuts on top of those already announced and a review of non-core assets, while also seeking to negotiate rent reductions with landlords on 25 stores that are up for lease renewal in the next five years.

House of Fraser's new owner, Sports Direct said this week that it aimed to keep 80% of stores open.