Debenhams PLC - Joint Venture with Freemans

RNS No 8410t
DEBENHAMS PLC
9th December 1998


DEBENHAMS AND FREEMANS IN DIRECT MAIL JOINT VENTURE

Debenhams plc, the UK's leading department store group, and
Freemans PLC, one of the largest UK Home Shopping companies, a
subsidiary of Sears plc, announced today the formation of a
joint venture company to launch a high quality direct mail
catalogue to be branded "Debenhams Direct".

The first catalogue is scheduled to be launched early in year
2000 as part of a plan to produce two catalogues each year.

The catalogue will feature Debenhams' comprehensive range of
major national and international brands and the renowned
"Designers at Debenhams" collection.  The catalogue will also
include a wide range of products and brands on offer from
Freemans which complement Debenhams' offering.  These include
the Betty Jackson, Wallis, Warehouse and Morgan brands; an
enhanced sportswear offering; a wide selection of electrical
goods; and an expanded homewares range.

The joint venture company, in which the parties will have an
equal interest, will have a dedicated and independent
management team from both companies led by Marisa Francini,
currently Director of Home Shopping at Debenhams.  The
parties' contributions to capital are not material and the
joint venture will be funded by loans from the shareholders
(in equal proportions) at an agreed rate of interest.

Commenting on today's announcement, Terry Green, Chief
Executive of Debenhams, said:

"We have been reviewing Home Shopping in the UK for some time
and have concluded that it is an important market for
Debenhams and complements our existing business.  To date our
activities in this area have provided us with invaluable
experience.  We are convinced of the benefits that can be
achieved, for ourselves and our customers, from combining our
market leading brands and retailing expertise with Freemans
catalogue distribution and fulfilment capabilities.  The
combined efficiencies and expertise of Debenhams and Freemans
offer Debenhams a low risk entry into this specialised
market."

John Pearmund, Chief Executive of Freemans, commented:

"We are very pleased to be working with Debenhams to produce a
new direct home shopping catalogue and are confident that it
will have wide consumer appeal and make a significant impact
in the home shopping market.

This joint venture represents a major opportunity for Freemans
to grow its presence in the direct market through a strategic
partnership that can benefit from its expertise in the mail
order sector and its distribution and fulfilment capability."

For further information, contact:

Matthew Roberts     Debenhams       0171 408 3229
Joanna Lane-Jones   Debenhams       0171 408 3459

John Pearmund       Freemans        0171 820 2337
Gail Hugill         Sears           0171 200 5969
Lucas van Praag     Brunswick       0171 404 5959


Name of authorised company official responsible for making
this notification:

David Wilson - Secretary and General Counsel
                               
Debenhams plc.  Registered in England.  Company No. 3430071
Registered Office: 1 Welbeck Street, London W1A 1DF


END

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