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What went wrong for Debenhams and how can the department store chain turn things around?

The accessories chain said that its stores will remain open as it restructures its debt. Carpetright announced that it has secured £12.5m of emergency funding from one of its largest shareholders and that it is exploring the opportunity of seeking approval for a restructuring plan under which it would slash rents and shut stores to avoid going into administration. Suits specialist Moss Bros has reported a drop in earnings and profit in 2017, blaming a “tough end to the year” and stock shortages which hurt sales. Chief executive Brian Brick said: “Going forward, we are planning for an extremely challenging retail environment, not least because of the uncertain consumer environment and significant cost headwinds.” Mothercare warned over profits after UK sales plunged in the run-up to Christmas 2017, with consumer spending falling in both stores and online. The Chinese owner of House of Fraser plans to sell its majority stake in the troubled department-store chain, adding to the upheaval on the UK’s shopping streets. Bargain Booze owner Conviviality could be heading for administration after failing to secure emergency funding, placing 2,500 jobs at risk. Lack of investment in its stores over a number of years has left its oversized estate looking tired, while its range of clothes is seen as functional rather than fashionable. Sergio Bucher, who was brought in as chief executive from Amazon to try to reverse Debenhams’ fortunes in October 2016, admitted that shopping at the chain was often like “going on a treasure hunt” for customers. He also conceded that Debenhams’ online experience was not as good as it could be and that its clothing range was not as good as some rivals’.

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