Up to 200 head office jobs at Debenhams are at risk as the ailing department store chain attempts to cut costs at its fashion and home divisions.
The retailer is consulting with some 200 buyers, merchandisers and other members of its fashion and homewares team at head office about potential cuts that are likely to result in at least 80 to 90 people losing their job.
The move is part of efforts to streamline management structures in a process set out by the chief executive, Sergio Bucher, in January after a poor festive trading period led to a major profits warning.
It is understood that a number of head office jobs have already gone in Debenhams’ beauty and food divisions in recent months.
The latest cuts come as the department store chain, which has issued three profit warnings this year, has been hit by reduced cover for suppliers by credit insurers. A reduction in cover tends to mean that suppliers demand payment upfront, putting increased strain on a retailer’s finances.
A spokesman for the company said: “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.”
Earlier this month the company insisted it “remains profitable and cash-generative, and our banks are supportive” after Moody’s said it judged Debenhams was more likely to default on its debts.
