Debenhams shares plummet to all-time low after chairman is ousted in boardroom coup
Debenhams’ shares fell to all-time lows after a dramatic boardroom coup that saw its chairman Sir Ian Cheshire ousted.
The embattled retailer’s shares plunged nearly 19 per cent as critics suggested chief executive Sergio Bucher is on ‘borrowed time’.
Analysts said Bucher and the management team are under immense pressure to rescue the business.
Debenhams shares plunged nearly 19 per cent as critics suggested chief executive Sergio Bucher is on ‘borrowed time’
Sports Direct tycoon Mike Ashley teamed up with another major Debenhams investor to drum up the votes needed to vote Cheshire and Bucher off the board.
Debenhams has chosen to keep Bucher on to run the business for the time being with board member Terry Duddy stepping in as interim chairman following Cheshire’s departure.
Analysts at Jefferies said: ‘Bucher is on borrowed time. The company is under pressure to secure stakeholder support to enable a much faster turnaround.’
Debenhams is locked in talks with its lenders about refinancing.
The High Street retailer has put on hold plans to sell its Danish department store Magasin du Nord, which is thought to be worth up to £250million.
Debenhams shares had plunged 18.9 per cent, or 0.91p, to 3.91p by the close yesterday.