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Debenhams backers reap profits

Debenhams has more than doubled its full-year profits and its backers look set to reap the rewards. CVC Capital, Merrill Lynch Private Equity and Texas Pacific have already taken £130m out of the business following positive results for the year ended 28 August, 2004. The department store, which was taken private last December for £1.7bn has already cut net debt by £537m since the leveraged buyout.

Debenhams was the subject of a highly competitive bidding process last year where a consortium led by Permira was also bidding for the business with a recommended £1.54bn cash offer.