The major High Street department store chain collapsed into administration earlier this month before being rescued by its lenders.

But it is now set to launch a rescue plan in the shape of a Company Voluntary Arrangement (CVA) in the next 48 hours, it has been claimed.

The insolvency measure – which allows retailers to shut loss-making stores and restructure debts – will apparently involve the closure of 20 stores.

A source said some of Debenham’s landlords are likely to oppose the drastic move, which could scupper it altogether.

Analysts claim the initial closures would put well over 1,000 jobs at risk.

Debenhams’ new owners – who bought the retailer out of administration – are a group of banks and hedge funds.

The chain currently has 166 stores, but in three years could be left with 146 if the CVA is passed.

CVAs have become a controversial measure in recent times as it failed to save the likes of Toys R Us and Maplin, both of which collapsed into the retail grave last year.

Many other big name retailers have also used CVAs to shut down stores including New Look, Homebase, House of Fraser and Mothercare.

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