Debenhams Plunges After Cutting Forecast for Third Time
- U.K. department-store owner plans cut in capital spending
- Shares fall 20 percent as retailer says U.K. ‘really weakened’
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Debenhams Plc plunged as much as 20 percent after the British department-store owner, struggling to compete with online rivals, cut its profit forecast for the third time this year and reined in spending on turnaround efforts.
The latest warning deepens a U.K. retail crisis that has claimed longtime fixtures of the country’s shopping streets such as BHS and prompted House of Fraser and Marks & Spencer Group Plc to shut dozens of stores. They’re all being squeezed by the rise of Amazon.com Inc. and online apparel sellers like Asos Plc, with bargain hunters turning to Primark and other discount clothing chains as Brexit squeezes spending power.