Debenhams is to close up to 50 high street shops after record losses of almost £500 million.
The closures will take place over a three to five-year period and is estimated to put around 4,000 jobs at risk.
The £491.5 million loss in the year to September 1, is the biggest in the retailers history.
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The chain's loss was a result of exceptional write-downs of £512.4 million, primarily relating to store and lease provisions, IT costs and impairment charges.
Debenhams CEO Sergio Bucher said it had been a "tough year" compared to 2017, when the group made a profit of £59 million.
'A tough year'
Sergio Bucher. Image: Getty
"It has been a tough year for retail in 2018 and our performance reflects that. We are taking decisive steps to strengthen Debenhams in a market that remains volatile and challenging," he said.
"We are taking tough decisions on stores where financial performance is likely to deteriorate over time."
As part of the shake-up, Mr Bucher will look to take £130 million of costs out of the business, including suspending the dividend.
Sales for the year also slipped 1.8 per cent to £2.9 billion while like-for-like revenue fell 2.3 per cent.
Despite the losses, Mr Bucher insisted the chain remained "a strong and trusted brand".
He added: "I can promise my 26,000 staff across the UK that we will work very hard to protect as many stores and as many jobs as we can."