LONDON — Debenhams Group completed a fundraise that drew far more investor interest than expected, pulling in £40 million in gross proceeds before expenses. The company issued 200 million new ordinary shares through a placing and 22.2 million more via subscription, all at 18 pence per share. That price sat 5% below the 19 pence closing price from February 17, 2026.

Net proceeds should hit £38.7 million after costs, according to the company announcement. Debenhams plans to use the cash to strengthen its capital structure and gain flexibility for its ongoing turnaround efforts. Application for admission to trading on AIM went in to the London Stock Exchange, with dealings expected to start at 8:00 a.m. on February 23, 2026. The new shares will rank equally with existing ones, carrying full rights to dividends and distributions.

Iain McDonald, who served nine years as a non-executive director and chair of the remuneration committee, stepped down right after the fundraise closed. He took part through funds he manages, prompting the move to avoid conflicts. ‘It has been a pleasure to be a non-executive director at Debenhams over the last 9 years,’ McDonald said. He called the current market valuation too low and praised CEO Dan Finley’s work in cutting costs and changing the business for profitability and growth.

The board said it remains properly sized and independent. Recent changes include Tom Handley’s appointment last year and Tim Morris becoming independent chair in 2024. Dan Finley, commenting on behalf of the board, highlighted the strong backing from new and existing shareholders. ‘The success of the fundraise demonstrates the strength of support for our multi-year turnaround strategy,’ he said. Finley also thanked McDonald for his expertise in technology, digital and marketing, and noted his ongoing role as an investor.

Several insiders joined the fundraise. Directors Dan Finley, Mahmud Kamani — along with his relatives and trusts — and Iain McDonald together subscribed for 61.9 million new shares. Frasers Group, which holds more than 10% of Debenhams’ current ordinary shares, took 59.7 million new shares. Both the director participations and Frasers’ stake count as related party transactions under AIM rules.

Independent directors, after consulting with nominated adviser Zeus Capital, ruled the terms fair and reasonable for shareholders. The fundraise built on an announcement from 4:42 p.m. on February 18, 2026, when Debenhams first outlined the placing and subscription plans. Investor demand exceeded the initial £35 million target, leading to the upsizing.

Debenhams operates as a leading online platform listed on AIM under the ticker DEBS. The company flagged the announcement as inside information under UK Market Abuse Regulation rules.