Shares of Debenhams fell as much as 12% today, after the department store chain withdrew its previous full-year outlook.

Debenhams said that talks with stakeholders to restructure its balance sheet would likely be disruptive. 

Once the UK's biggest department store operator, Debenhams has reported a string of profit warnings as it failed to keep pace with consumers moving online and to cheaper outlets. 

The company, which said in January it was on track to hit an annual profit target of £8.2m, said today that the outlook was no longer valid. 

Debenhams said talks with stakeholders had now progressed to include options to restructure its balance sheet to address its future funding requirements. 

It had in February secured £40m in extra funding from some lenders. 

"While trading headwinds have moderated in recent weeks, this (restructuring) process is likely to be disruptive to our business in the coming months," Debenhams said in a statement. 

It also blamed weaker retail spending and higher financing costs as a result of additional working capital needs. 

However, a 5.3% fall in like-for-like sales in the first half to March 2 was an improvement over the 5.7%drop in the first 18 weeks of the financial year. 

The company said it still expects to shut 50 stores in the near future, and added that its annualised £80m cost saving programme was on track.