Will Debenhams be lost from the High Street?

Will Debenhams be lost from the High Street?

Will Debenhams be lost from the High Street?

The Credit Rating Agency Moody’s recently changed Debenhams outlook to negative from what had been stable, this is because it believes creditors could have risks lending to the store which is currently the latest in a list of struggling department store chains.

Debenhams sales continue to decline in the 18-week period to the beginning of January, with it’s like-for-like sales down 5.7%.

With the high street struggling to compete with online competition, a lot of high street department stores are struggling in a big way and taking a lot of the heavy cost in jobs.

Debenhams loss from the High Street, could be a massive hit, employing 27,000 people with 165 stores, it’s loss could leave an already decimated high street looking even more empty.

From the chart it looks like the short sellers have entered in a large majority, this stock price could take a beating, if Debenhams can be saved, it will have to take some good fortune not just from the high street, but from investors and the restructure of it’s large debt.

We’re taking in this opportunity to take a quick short position, we believe it could continue in a downward trend, at least reaching 2.000 price, and at that price, who knows what could happen.

(Our trading and image was done using an account with UK based broker IG)

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