Debenhams to close 50 stores leaving doubts over jobs at six Kent stores

Debenhams plans to close 50 stores over the next three to five years, putting 4,000 jobs at risk nationally and leaving hundreds of staff in the county facing uncertainty about their future.

The struggling retailer, which has six stores in Kent, revealed plunging pre-tax losses of £491.5 million as its chief executive said the company has been forced to take "tough decisions".

It revealed a host of turnaround plans including prioritising investment in 100 of its stores and developing a lower-cost approach to 20 others.

Debenhams in Ashford
Debenhams in Ashford

The company has stores in Ashford, Canterbury, Chatham, Folkestone, Gravesend and Westwood Cross.

Chief executive Sergio Bucher said: "It has been a tough year for retail in 2018 and our performance reflects that.

"We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging.

"Working with our new CFO Rachel Osborne, and the board, I am determined to maintain rigorous cost and capital discipline and to prioritise investment to achieve profitable growth.

"At the same time, we are taking tough decisions on stores where financial performance is likely to deteriorate over time."

Debenhams in Gravesend
Debenhams in Gravesend

Debenhams reported a 2.3% fall in like-for-like sales in the year to September amid weak performance in fashion and beauty.

The company managed an underlying pre-tax profit of £33.2 million but had to write off £512.4 million in store costs and leases.

Its losses come after making a pre-tax profit of £59 million last year.

Mr Bucher added: "Debenhams remains a strong and trusted brand with 19m customers shopping with us over the past year.

"Our transformation strategy is gaining traction, with positive results from new product and new formats, general acclaim for our store of the future in Watford and digital growth that is outpacing the market.

"With a strengthened balance sheet, we will focus investment behind our strategic priorities and ensure that Debenhams has a sustainable and profitable future."

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