Many Commercial Properties Closing, Not Debenhams

Posted on 25 October, 2011 by MOVEHUT

With energy prices on the increase and the announcement of business rates rising, many businesses are struggling to keep their doors open. However, not Debenhams, not only have they declared a rise in profits, but they have also confirmed that they plan to open nine new commercial properties and revamp many current ones.

Profits before tax were up by 8.3 per cent at the end of September of this year. Sales were also increased by 1.2 per cent before value added tax (VAT) was incorporated.

Michael Sharp, Chief Executive, expressed: “We have demonstrated the resilience of the department store model by trading well in a challenging market. It is right to remain cautious about the strength of consumer confidence over the next 12 months given the uncertain economic outlook. We will therefore continue to run the business with tight management of costs and stocks.”

Two of the nine new Debenhams stores are to open in South Yorkshire. One of the stores will be built in Barnsley in 2014. The commercial property in Barnsley will be situated in the market area in the centre of the town.

The second new store in South Yorkshire will be opened in Chesterfield in either 2012 or 2013. This commercial property in Chesterfield will be located on the Ravenside Retail Park, just outside of the town centre.

Speaking of the new stores, Mr Sharp, put across: “This is a strong signal that the UK high street is alive and well and we are backing it 100 per cent. It’s great news for job seekers as well as shoppers across the country.”

“It also shows a very real commitment to our clear focus on growing our UK retail business. I’m delighted that over the next few years more customers than ever before will have access to the UK’s top name beauty brands and our exclusive and ever-growing designer range at Debenhams offer,” Mr Sharp added.

Nevertheless, although Debenhams have reported growth in terms of profit and property expansion in the last year, they still have over £383.7 million worth of debt. Although this figure seems ridiculously high to the majority of us, Debenhams managed to pay off 34 per cent of their debt in the last year. So if they carry on doing as well as they have been, they could potentially be debt free in just over two years from now (as long as they don’t borrow anymore).

The company mainly operates under the high street name that is well recognised by all of us in the UK, ‘Debenhams’ but the company is run by a different name in Denmark; ‘Magasin du Nord’. Debenhams currently has 169 commercial properties in the UK, Republic of Ireland and Denmark. The company also has 64 franchises in 25 countries.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Optimism from the Bank of England’s chief economist

The most expensive commercial properties.

Businesses operating from shared premises will miss out on grants

BA cuts 12,000 jobs, unions hit back

Media Streaming Service See Record Subscriptions

Covid-19 Causes Millions To Claim UK Furlough Scheme

America, Amazon Wants You!

UK Firms Battle To Survive

COVID-19 Grounds EasyJet Fleet

ECB Emergency Fight Back Aganist Covid-19

Aldi’s Expansion Plan

British Steel on the verge of collapse with over 20,000 jobs at risk

Paris watches as flames engulf one of France’s most famous landmarks

Debenhams on the brink of administration as board reject Ashley’s bid

Emmanuel Macron pushes for a new Europe with European Parliament elections on the horizon

Brexit impacts property market

Brexit uncertainty impacts the property market