In a note issued to the City this morning, DFS confirmed it was close to agreeing a deal with is lending banks to extend its existing £250m facility by an additional £60m to £70m.

Alongside extending its debt facility, DFS said it was preparing for a “possible non pre-emptive” equity issue of up to 19.9% of its existing capital.

The retailer said such a move would further strengthen its balance sheet and provide “resilience for a continued disrupted trading environment”.