Debenhams will cut as many as 90 staff as it begins a consultation that could see hundreds more made redundant.
The struggling department store chain is entering talks with employees in its fashion and home departments as part of a large-scale restructuring as it bids to turn around its fortunes. The latest cuts come after it announced plans to slash 320 store management roles in February.
Debenhams said it plans to refocus the business on three core areas: beauty, fashion and home, and food and events as part of a new strategy announced earlier this year.
In June, the company issued its third profit warning this year and is trying to cut costs fast to avoid collapse.
In January the 205-year-old retailer announced a further £10m of savings to be implemented this financial year and £20m of further annual cuts.
“Our work to create a simplified and consistent structure across these units, reducing complexity and driving efficiency in order to deliver our Debenhams Redesigned strategy, is continuing,” Debenhams said in a statement.
Speculation that Sports Direct owner Mike Ashley would merge the company with rival House of Fraser sent shares in Debenhams up more than 10 per cent on Tuesday.
The retail tycoon pledged to turn House of Fraser into the Harrod’s of the High Street after a £90m buyout last week..
Mr Ashley’s Sports Direct owns just under 30 per cent of Debenhams meaning he is close to the threshold at which he would have to launch a takeover bid under City rules. The sports clothing retailer said last month that it had taken an £85m hit on its stake in Debenhams
