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		</div><p>The retailer is preparing documents for a company voluntary arrangement (CVA), a type of insolvency procedure which could help it reduce rents and shutter underperforming stores, according to the Financial Times.</p>
<p>Debenhams declined to comment.</p>
<p>The move is expected in the next few weeks, as the chain approaches the quarterly rent due date in March.</p>
<p>Debenhams previously ramped up its store closure plans, estimating that 50 will be shut over the next three to five years.</p>
<p>But the use of a CVA could accelerate this further, with up to 20 store closures thought to be likely this year if the plans go ahead.</p>
<p>Meanwhile the company is expected to make an announcement on the status of refinancing negotiations with its lenders later this week.</p>
<p>It has been locked in talks over its £520 million borrowing facilities, as it seeks a fresh cash injection. Options include a debt for equity swap.</p>
<p>Sports Direct founder Mike Ashley, who already holds a 29% stake in Debenhams, has previously offered to give the company a £40 million loan, claiming that the business in its current state has &#8220;zero chance of survival&#8221;.</p>
<p>Although his offer was turned down due to the conditions attached, it is understood that Mr Ashley remains engaged with Debenhams interim chairman Terry Duddy.</p>
<p>Last month Mr Ashley flexed his muscles at the firm&#8217;s annual meeting, ousting chairman Ian Cheshire. Chief executive Sergio Bucher was also forced off the board but has stayed on in his role.</p>
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