Debenhams investors support rights issue

Investors in Debenhams, who bought the Principles chain earlier this month, are ready to support a rights issue at the company, should one be announced when the group delivers full-year results this week.

Nick Bubb, analyst at Pali International, said: “If recent like-for-like sales are only about 2 per cent down, implying good market share growth, they would get support from most investors. The problem over a rights issue is the weak shareholder base, with Baugur, Texas and CVC forming such a big part of the total.”

But sources close to TPG, its biggest shareholder, said: “I think a rights issue would be well supported. It performed relatively well of late compared to other retailers out there.”Another investor said: “There are so many rights issues out there or in the pipeline at the moment they should do it sooner rather than later. We would support it.”

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