Debenhams posted a group like-for-like sales drop of 3.4% in the six weeks to 5th January.

Despite a growth in online sales, UK sales dropped 3.6% following weak footfall in-store.

The company is currently in ‘constructive’ talks with its leaders in a bid to refinance existing bank facilities within the next 12 months.

Sergio Bucher, chief executive of Debenhams, said: “In order to ensure that Debenhams has a sustainable and profitable future we need a strong customer proposition, a strengthened balance sheet and a reshaped store portfolio. We have a robust plan to deliver this and while there is much work still to do, the performance of our Redesigned stores over peak, and continued outperformance in digital, reinforce our view that we are taking the right steps to protect the future of the business."