£40m cash boost for Debenhams revealed as retailer struggles to stay afloat

Around £40m has reportedly been secured for Debenhams, buying it more time to secure a long-term deal with lenders.

The department store is expected to announce its funds soon. The chain is currently in talks with lenders, aiming to overcome its debts.

It is also aiming to make better progress on its plans to close stores, with 20 expected to close this year.

In 2018, House of Fraser - a rival of Debenhams - was bought by billionaire Mike Ashley for £90m, after falling into administration.

Ashley is said to be a shareholder in the chain, with a 29 per cent stake. Yesterday, it was revealed he has slashed his multi-million pound deal to help save cafe chain, Patisserie Valerie.

Last year, Debenhams announced it would close up to 50 stores within a timeline of three to five years, which would put 4,000 jobs on the line.

However, this new insolvency deal would allow it to act upon the closure of around 20 of its department stores to date.