Debenhams' shares have plunged after it brought in financial advisors.

The high street chain has called in KPMG to help draft emergency plans to save the troubled retailer.

The department store is said to be considering a list of options including a company voluntary agreement (CVA), a controversial insolvency procedure used by struggling firms to shut under-performing shops.

The company has brought in KPMG to help draw up the turnaround plans, according to The Sunday Telegraph which first reported the news.

If Debenhams charges ahead with a CVA, it would join a raft of retailers including New Look, Carpetright and Mothercare, who have opted for the restructuring tool despite anger from landlords who have argued it leaves them out of pocket.

The news sent shares down more than 17 per cent in morning trading.

Debenhams last month said it would swing the axe on up to 90 staff at its fashion and home departments as part of a major cost-cutting drive.

In January it announced plans to ramp up efficiency savings, with another £10 million earmarked for this financial year and £20 million extra annually.

Chief executive Sergio Bucher, who is leading the shake-up, then went on to slash 320 store management roles in February.

In June, Debenhams issued its third profit warning this year as trading came in "below plan".

To compound matters, Debenhams is also the subject of takeover talk, with speculation building that Mike Ashley is set to merge it with his newly acquired House of Fraser.

Mr Ashley owns just under 30 per cent of Debenhams, close to the threshold at which he must launch an official takeover bid.

In Essex, Debenhams has stores in Basildon, Southend, Chelmsford and Colchester.