DSGi looks to raise multi-million pound lifeline

DSGi is preparing for a rights issue which could raise it hundreds of millions of pounds, according to the Sunday Telegraph.

Apparently, the final decision whether to go ahead will not be made until it has concluded discussions regarding the sale of some of its foreign business properties.

CEO Jon Browett is also reported to be in negotiations with banks over changes in borrowing covenants and credit rating issues.

As reported by PC Retail, the group was one of the many retailers hit by recent reductions in credit by insurers. However the firm insists that strategies such as the full scale revamp of its entire retail portfolio will help it weather the economic storm.