Group like-for-like sales at Debenhams fell by 5.7% in the 18 weeks to 5 January, as it seeks to refinance its existing facilities.
Sales in the UK declined by 6.2% during the same period.
The department store said the group had put “any further asset disposals on hold” until the outcome of discussions, which include seeking new sources of funding, are known.
It previously outlined plans to close up to 50 stores over the next three to five years.
The retailer reported a 3.4% decrease in group like-for-like sales during the six weeks to 5 January, which includes the crucial festive trading period. UK sales decreased by 3.6%, with “weak store footfall offset by growth in digital”.
See also: What next for Debenhams and John Lewis?
Sergio Bucher, chief executive of Debenhams, said: “We have taken decisive steps to maintain rigorous cost and capital discipline and I am grateful to my colleagues for their hard work as we maintain a rapid pace of change.
“In order to ensure that Debenhams has a sustainable and profitable future we need a strong customer proposition, a strengthened balance sheet and a reshaped store portfolio.
“We have a robust plan to deliver this and while there is much work still to do, the performance of our redesigned stores over peak, and continued outperformance in digital, reinforce our view that we are taking the right steps to protect the future of the business.”
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