Debenhams has named Stefaan Vansteenkiste as its new Chief Executive Officer, tasked with implementing the ailing department stores turnaround plan.
He was appointed by Debenhams’ new owners – a group of lenders made up of banks and largely American hedge funds – in April under the title of Chief Restructuring Officer.
Vansteenkiste will now take over the running of the business from Chairman Terry Duddy, who has been in charge since Sergio Bucher vacated the CEO position in April. Duddy, a retail veteran whose previous jobs included running Argos and Homebase, will officially step down from Debenhams’ board in September.
Vansteenkiste is described as an experienced turnaround expert having most recently been Managing Director for corporate recovery firm, Alvarez & Marsal. During his time at A&M, he was involved in a number of turnaround situations, including CEO and other roles at Intertoys, Vion Food Group, Diam International and Bally Shoes.
Commenting on the appointment, Duddy said: “We concluded that he is the right person to take the business forward into the next phase of its recovery. Stefaan has already made a strong contribution since joining Debenhams, and has the support of our investor consortium to drive forward our turnaround plan.”
Vansteenkiste added: “The retail industry faces a challenging environment and everyone at Debenhams acknowledges that. But we have a clear plan and Debenhams has a great team of people who are committed to delivering it.
“I am very excited about Debenhams’ strong prospects and with a restructured balance sheet there is a robust platform from which to build a turnaround, based on Debenhams’ clear brand focus, broad customer reach and differentiated product offer.”
Recent reports have suggested that Debenhams is seeking extra funds from its lenders to see it through what is expected to be difficult Christmas trading period.
Debenhams has plans to close 50 of its 166 UK stores, with the first tranche of 22 closures planned by early next year.
NAM Implications:
- Given the key stakeholders, anticipate a very finance-based approach to recovery.
- NAMs should use skills in calculating cost and demonstrating financial impact on Debenham’s P&L…
- …helping the company optimise “Debenhams’ clear brand focus, broad customer reach and differentiated product offer.”
- …whilst keeping fingers crossed at all times…
