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Debenhams is to close 50 stores and put 4,000 jobs at risk after suffering a £491.5 million loss.

The high street giant said the closures will take place over a three to five year period and the announcement comes alongside a dire set of financial figures.

Debenhams swung to a £491.5 million loss in the year to September 1 after being stung by exceptional write-downs of £512.4 million, primarily relating to store and lease provisions, IT costs and impairment charges.

It marks the biggest shortfall in the 240 years of the business, which dates its roots back to 1778, and the loss compares to a profit of £59 million last year.

Sales for the year also slipped 1.8 per cent to £2.9 billion while like-for-like revenue fell 2.3 per cent.

Boss Sergio Bucher said: "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.

"We are taking tough decisions on stores where financial performance is likely to deteriorate over time.

"Debenhams remains a strong and trusted brand with 19 million customers shopping with us over the past year. With a strengthened balance sheet, we will focus investment behind our strategic priorities and ensure that Debenhams has a sustainable and profitable future."

A spokesperson for Debenhams on Thursday morning would not detail which 50 of the stores were at risk.

As part of the shake-up, Mr Bucher will look to take £130 million of costs out of the business.

​T he reduction in stores would see the brand go down to having around 100 premises, after it had already been announced earlier this year 10 stores faced the axe.

In a letter to property industry magazine Estates Gazette last week, Sergio Bucher highlighted the costs of property to Debenhams.

​He said: "After our people, property is our biggest cost.

“And, right now, it is our biggest challenge.

“While almost all of our 166 UK stores are profitable today, extrapolate current market trends three to five years forward and that picture is going to change.”

Debenhams had been under increased scrutiny since its rival House of Fraser collapsed in August.

In September, it sought to reassure investors about its finances, after appointing KPMG to help improve its performance and maximise shareholder value.

It already issued three profit warnings in 2018.

The company's shares fell from 35p in January to just 8.5p which gave it a value at just more than £100m.

There has also been recent discussion that Debenhams could be subject to a takeover, with speculation that businessman Mike Ashley could merge it with the House of Fraser chain which he recently took over.

Mr Ashley owns just under 30 per cent of Debenhams.

This is close to the threshold at which he must launch an official takeover bid.

The issues at Debenhams come as a raft of retailers also embark on store closures programmes.

These include New Look, Carpetright and Mothercare.