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Debenhams pushes ahead with restructuring after legal challenges rejected

Struggling U.K. department store Debenhams PLC on Sept. 19 said it will proceed with its restructuring after a court dismissed legal challenges against the plan.

Sports Direct International PLC and other parties filed petitions against Debenhams' company voluntary arrangement, or CVA, in June, but an unnamed court rejected the parties' claims on four of five unspecified grounds.

The British retailer said the remaining conflict was resolved by deleting a technical provision related to landlord forfeiture.

"Our proposals had unprecedented levels of support from our landlords and today's outcome is good news for our 25,000 employees, our pensioners and suppliers," said CEO Stefaan Vansteenkiste. "We retain the support of our lenders, and everyone at Debenhams can continue to focus on trading ahead of the important Christmas period."

Debenhams disclosed plans for the CVA, which would see its store count drop to 50 from 166, in April. Other dissenters of the CVA included M&G Real Estate, a fund management group owned by insurer Prudential PLC, though it withdrew its legal challenge in July.