🏢 DEBENHAMS PLC — RX DEAL ANALYSIS

<aside> 📊 📊 DEAL SNAPSHOT | Debenhams plc | Pre-Pack Administration + CVA | England & Wales | April 2019 — December 2020

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⚡ At a Glance

<aside> 💰 Peak Debt ~£560m At peak stress in April 2019

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<aside> 📅 Filing Date 9 April 2019 Pre-pack administration filed

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<aside> 🏁 Final Outcome Brand Sale — Dec 2020 Boohoo acquires brand for £55m

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<aside> 🏦 Lead Advisors Lazard · FTI · Kirkland RX FA · Administrators · Legal

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01 | Executive Summary

<aside> 📋 Debenhams was one of the UK's oldest department store chains, founded in 1778. A leveraged buyout in 2003 left the business with a structurally impaired balance sheet and a stripped-out property estate. Years of declining footfall, margin compression, and failed digital transformation culminated in pre-pack administration in April 2019 — engineered by US distressed debt funds Silver Point Capital and GoldenTree Asset Management, who converted their bond holdings into equity ownership overnight, wiping out all shareholders including Mike Ashley's 29% Sports Direct stake.

A subsequent CVA restructured lease obligations across 166 stores. Despite a brief operational stabilisation under new ownership, the onset of COVID-19 forced a second administration in April 2020, leading to the eventual liquidation of all stores and the sale of the Debenhams brand to Boohoo for £55m in December 2020 — with zero recovery for landlords, trade creditors, or equity. 12,000+ jobs were lost.

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02 | Company Background & Capital Structure

Company Profile

Debenhams plc was a British multinational retailer founded in 1778, operating primarily as a department store chain across the UK, Ireland, and internationally. At its peak, the company operated over 166 stores in the UK employing approximately 25,000 staff, with a further c.10,000 in international markets. The business sold clothing, homeware, beauty products, and food & drink through a mix of owned brands and third-party concessions.

Key Financials (Pre-Distress)

Key financial metrics in the years leading to distress:

<aside> 📈 FY2016 → Revenue: £2,341m | UK EBITDA: ~£200m | Op. Profit: ~£115m | Net Debt: ~£200m | PBT: ~£96m

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<aside> 📊 FY2017 → Revenue: £2,330m | UK EBITDA: ~£174m | Op. Profit: £107m | Net Debt: ~£250m | PBT: £59m

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