StockMarketWire.com - Ailing department store chain Debenhams said it would close up to 22 stores in 2020 as part of its restructuring efforts, affecting around 1,200 jobs.

The store closures were announced as part of a new company voluntary arrangement, or CVA, with landlords.

Debenhams said the CVA provided a mechanism to restructure the store estate in line with a previous plan outlined in October to close around 50 of the current UK store portfolio of 166.

Further store closures would be confirmed in due course, with the final number depending on future trading performance and discussions with landlords.

Debenhams said around 1,200 people who work in the stores were affected and had been informed of the plans this morning.

'We will try to redeploy as many as possible,' the company added.

The CVA did not seek to compromise claims of any creditors other than certain landlords, local authorities and inter-company liabilities.

'All trade suppliers and the entitlements of employees will continue to be paid in full during this process,' Debenhams said.

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