Debenhams Group has completed a capital raise that brought in approximately £40m ($54m) in gross proceeds, after investor demand surpassed £35m and pushed the process beyond the company’s original target. The Debenhams Group fundraise follows the retailer’s 18 February 2026 announcement outlining plans to proceed with a placing and subscription.
The transaction was priced at 18 pence per share, a 5% discount to the 19 pence closing price on 17 February 2026. At that level, the company said the offering was “significantly oversubscribed.” The raise consisted of a placing of 200 million new ordinary shares and a subscription for a further 22.22 million shares. After fees and expenses, Debenhams expects net proceeds of about £38.7m.
The new ordinary shares are scheduled to be admitted to trading on AIM on 23 February 2026. Debenhams said the shares will be fully paid and will rank pari passu with existing ordinary shares, including eligibility for any future dividends or other distributions.
Debenhams Group CEO Dan Finley said: “We are pleased with the strong level of support from new and existing shareholders. The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy. The fundraise will deliver an improved capital structure for the Group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders.”
Alongside the fundraising, the company confirmed a board change: Iain McDonald has resigned as a non-executive director and chair of the remuneration committee with immediate effect. Debenhams said the change enables certain funds managed by McDonald to participate in the Debenhams Group fundraise. McDonald was among the investors participating in the transaction, alongside Finley, director Mahmud Kamani and associated parties.
The board said it remains appropriately sized and independent following McDonald’s departure, noting Tom Handley’s arrival last year and Tim Morris’ appointment as independent chair in 2024.
McDonald said: “It has been a pleasure to be a non-executive director at Debenhams over the last 9 years and I am delighted to support the Company in the Fundraising. This should be viewed as a measure of how much I believe the current market valuation of the business undervalues its future prospects. Dan has transformed the cost base and business model since being installed as CEO and with the re-basing of the business to a profitable core now largely complete, the prospects for strong growth and cash generation are the best for many years. I have confidence in the Board and wider management team on delivering its turnaround. I look forward to watching the continued momentum of the business as a supportive investor.”
In its update, Debenhams also said trading for the year ending 28 February exceeded forecasts, and it now expects full-year Adjusted EBITDA from total operations to reach £50m.