DEPARTMENT store chain Debenhams has secured a lifeline from its lenders, including a £40million cash injection.

The announcement ends months of uncertainty over the company’s finances, which led to Sports Direct boss and Debenhams shareholder Mike Ashley saying the firm had little chance of survival.

The retailer – whose New Bond Street store is one of Weymouth’s major retailers – confirmed an agreement with current lenders and noteholders to extend its borrowing facilities by a year with a cash injection of £40m.

It will act as a bridge while the company continues talks for a longer-term refinancing.

Chief executive Sergio Bucher said the announcement “represents the first step in our refinancing process.”

Debenhams reported a pre-tax loss of £491.5m last year and suffered falling sales at Christmas. I announced last year that it would close up to 50 stores, and it has been suggested that 20 of those closures could happen this year.

Mike Ashley owns a 29 per cent stake in Debenhams – close to the figure which would require him to mount a formal takeover bid.