Just days after Debenhams fell into the hands of its lenders via a pre-pack administration, it has been suggested that the department store chain’s Chief Executive Sergio Bucher will step down in the coming days.
A source close to him told the BBC: “Having stayed on and got the refinancing in place, Sergio thinks now would be the right moment to move on,” adding: “The upcoming restructuring can then be led by someone offering a fresh start.”
Other reports stated that Debenhams’ new owners – a group of lenders made up of banks and largely American hedge funds – believe that Bucher is the wrong person to lead a turnaround of the retailer. Retail veteran Terry Duddy, who is currently serving as interim Chairman of Debenhams, is understood to be the favourite to take charge.
Bucher joined Debenhams from Amazon in late 2016, and subsequently implemented his ‘Redesigned’ strategy aimed at overhauling stores and reinvigorating the product offering. However, the plan has yet to result in a significant upturn in trading with the retailer issuing three profit warnings in 2018 alone.
Last week, it was reported that Stefaan Vansteenkiste, a Managing Director at the professional services firm Alvarez & Marsal, is being lined up to take the role of Chief Restructuring Officer of Debenhams.
A Company Voluntary Arrangement (CVA) involving the closure of dozens of stores and loss of thousands of jobs is expected to be launched in the coming weeks. Debenhams has already outlined that it wants to close around 50 of its 165 outlets and renegotiate rents with landlords to put the business on a more sustainable financial footing to enable it to push ahead with its turnaround strategy.
A spokesperson from the group that now owns Debenhams said: “The investor consortium has provided Debenhams with £200m in fresh funding, which will see it through the restructuring process and be available to fund the company for the foreseeable future.
“Within the consortium, there is extensive turnaround experience, which we will deploy to support the management’s turnaround plan. We are pleased that now under new ownership, the business can look forward with confidence, and we intend to work closely with management and the board to position Debenhams for a long-term successful future.”
