Debenhams’ Unsecured Debt Revealed: A £55m Takeover Deal with Boohoo Falls Short

  • Debenhams’ unsecured creditors to lose out on £1.3bn
  • Includes £323.6m in revolving credit facility and £202.5m in unsecured loans
  • No funds available for distribution to unsecured creditors
  • Debenhams fell into administration in 2020, agreed to a £55m takeover deal with Boohoo in 2021

Debenhams’ unsecured creditors, including clothing suppliers and landlords, are set to lose out on the £1.3bn they were owed before the business collapsed in 2020. A report from the department store’s liquidator, AlixPartners, revealed that no funds were available for distribution to these creditors who do not hold any security or collateral against the debt owed to them. The debt includes £323.6m in respect of its revolving credit facility and £202.5m in unsecured loans. Debenhams fell into administration at the end of 2020 and was set to be wound down before a £55m takeover deal was agreed with Boohoo in 2021, but this transaction only included its intellectual property assets and did not cover retail stores, stock or financial services. AlixPartners declined to comment.

Factuality Level: 8
Factuality Justification: The article provides accurate information about Debenhams’ collapse, the amount owed to unsecured creditors, and the details of the transaction with Boohoo. It is well-researched and objective in its reporting without any sensationalism or personal perspective.
Noise Level: 3
Noise Justification: The article provides relevant information about Debenhams’ collapse and the losses faced by unsecured creditors but lacks in-depth analysis or exploration of broader implications.
Financial Relevance: Yes
Financial Markets Impacted: Debenhams’ creditors and potential Boohoo
Financial Rating Justification: The article discusses the financial impact on Debenhams’ unsecured creditors, who are set to lose out on £1.3bn owed before the business collapsed, as well as the impact of the transaction with Boohoo.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk