Debenhams Group has secured a new three-year funding facility of up to US $ 223 million from its former owner TPG.
The retailer, which also owns Boohoo and PrettyLittleThing, said the refinancing provides greater financial flexibility to support its multi-year turnaround strategy. A portion of the new facility is being led by TPG Angelo Gordon, a subsidiary of US private equity firm TPG, which was part of the consortium that took Debenhams private in 2003.
The agreement extends maturity to August 2028 and replaces the group’s previous US $ 159 million revolving credit facility, which was due to mature in October 2026. The interest rate has been set at the Bank of England base rate plus 7.3%.
Chief executive Dan Finley said the company had secured the facility a year ahead of schedule, with what he described as strong lending partners, following a comprehensive review of the market. He added that the refinancing was aligned with the group’s new strategy and would support efforts to turn around its youth-focused fashion brands.
The financing comes as shareholder Frasers has called for the suspension of executive vice-chair Mahmud Kamani. The company demanded an immediate inquiry into allegations that Kamani was involved in making loans to suppliers, following a report in The Telegraph.
