Debenhams raises nearly $54 million in oversubscribed fundraise

British fashion retailer Debenhams said on Thursday it has raised about 40 million pounds ($53.99 million) through an oversubscribed share placement, surpassing its initial 35 million-pound target, as it looks to boost liquidity.

Formerly known as the Boohoo Group, Debenhams has been cutting costs and debt to turn around a business straddled by supply-chain challenges and weak demand.

It has also been negotiating with lending syndicates to secure additional financial flexibility.

“The fundraise will deliver an improved capital structure for the Group, providing us with greater financial flexibility to execute our turnaround strategy and deliver value for all shareholders,” Group CEO Dan Finley said in a statement.

The company said it has sold 222.2 million new shares at 18 pence each, with net proceeds of 38.7 million pounds after expenses.

($1 = 0.7409 pounds)