Debenhams has announced its Company Voluntary Arrangement (CVA) plans have been upheld and legal challenges have been concluded.

The department store chain groups faced legal challenges to its plans to renegotiate rates, close stores and restructure debt when it announced it was launching a CVA after falling into the hands of consortium of investors Celine Jersey Topco in April last year.

In September, the High Court rejected a challenge launched by Combined Property Control Group (CPC) - the landlord of six Debenhams stores in England.

CPC’s legal action had been financially supported by Frasers chief executive Mike Ashley, who had dropped his own legal action against the company in July.

The conclusion of legal challenges marks a major setback in Ashley’s bitter battle to seize control of the future of Debenhams, after the CVA saw the value of Sports Direct’s 30 per cent holding in the company wiped out.

In a statement this morning, Debenhams said all procedural matters pertaining to the CVA challenges had been concluded in its favour. The time period for any appeal to be lodged has now expired.

It will now be able to proceed with the next stages of the CVA, including the final phase of its debt restructuring in due course, which is expected to take the form of a Scheme of Arrangement resulting in the conversion of at least £100 million of debt to equity.

In January, Debenhams announced that 19 stores would close.

Stefaan Vansteenkiste, chief executive of Debenhams, said: “We can put the distraction of this litigation behind us and proceed with our plans to turn the business around – with committed investors, a strengthened board and a restructured balance sheet we have the platform from which to rebuild a sustainable business.”

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