Struggling British department store group Debenhams said today its shareholders could be wiped out as a result of some of the restructuring options it is considering.
Debenhams has issued a string of profit warnings and lost 90% of its market value in the past year.
The company is also trying to fend off an attempt by its largest shareholder, Mike Ashley's Sports Direct, to take control of the business.
Debenhams said today it was seeking £200m of additional funds from lenders allowing it to pursue restructuring options to secure its future.
But the retailer said "certain of these options - if they materialise - would result in no equity value for the company's current shareholders."
Its shares fell 45.2% today, valuing the business at just £19.5m. Its net debt at January 5 was £286m.
Analysts expect Debenhams' restructuring to include an acceleration of its store closure plan and see a so called pre-pack administration as an option.
Debenhams shares slump after restructuring warning pic.twitter.com/JuIl7qFKjN
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Debenhams said it was seeking agreement from bondholders to change the terms of some of their bonds as part of the process to secure the new loans of up to £200m from existing lenders.
It had previously said it was working on a plan to raise an additional £150m.
Debenhams has launched a "consent solicitation" for holders of its 5.25% senior notes due 2021. This process seeks consents from bondholders to certain amendments to the existing notes.
A successful consent solicitation would allow Debenhams to enter into the new loan facilities.
Last week, Sports Direct offered Debenhams a £150m loan and today said it had offered to buy Debenhams' Danish business Magasin Du Nord for £100m.
As with Sports Direct's previous offers of assistance, it came with conditions - Ashley would become CEO of Debenhams to help it through the restructuring process.
Sports Direct, which owns nearly 30% of Debenhams' shares, yesterday requisitioned a meeting of the department store group's investors, with the intention of removing all current board members other than chief financial officer Rachel Osborne.
A Sports Direct executive told the Financial Times this week it would seek to buy Debenhams if the department store chain did collapse into administration.
