This evening, the scale of troubles that are faced by Debenhams, the beleaguered high street giant, unfolded with some reports that the department store chain is set to unveil its biggest loss in the 240-year history of the company tomorrow morning.
Today, Sky News reported that Debenhams is set to announce statutory annual losses that are almost near the £500 million mark in its statement that is set to be released tomorrow, with plans to close as much as 50 of its 165 stores over the next five years.
It is believed that the vast majority of the £500 million loss comes from non-cash assets being added to the balance sheets, some sources informed Sky that the items were not able to affect the financial position of the company.
The dividend of the company is also expected to be suspended.
The news comes in the wake of various profits warnings that were issued by Debenhams within the previous year, as long tenancy agreements, increasing labour costs and heightened competition from online rivals weigh on the balance sheet of the company.
Earlier this month, the department store chain revealed its turnaround plans in an attempt to reassure its both shoppers and investors following a challenging summer.
Among the other plans to sustain the business is the sale of its Magasin du Nord, its Danish department store business, in a deal that is estimated to be worth approximately £200m.