Debenhams shares weaken on banking fears

Department store chain Debenhams saw shares hit a record low today amid fresh City fears over the group’s financial health in a tougher retail climate.

The company’s shares slipped 10% to 39p at one stage – valuing it at £335m (€424m) – after an 18% fall on Friday amid analyst concerns that Debenhams could breach banking covenants and cut its dividend to save cash.