Debenhams today moved to reassure investors it is not going bust, angrily rejecting what chief executive Rob Templeman called "recent inaccurate market rumours and speculation".

The department stores chain brought forward a trading update in an attempt to stem claims that its debts are unmanageable, and banking covenants may be breached.

The response is unusual in that it is a reaction to just one analyst's note - a stinging piece of research by Mike Dennis of Piper Jaffray.

Dennis said Debenhams needed to raise fresh cash from investors, and suggested the shares could plunge to just 17p - a claim that looked like becoming true at one point. The shares had tumbled on the claim but regained some ground today, rising 43/4p to 47p.

That's still down 80% from the 195p a share at which it was brought back to the stock market by CVC, Merrill Lynch and TPG Capital in May 2006.

Critics of private equity say Debenhams remains a clear example of how the industry benefits itself at the expense of the public.

Debenhams today said like-for-like sales are up 1% in the last 10weeks - a solid performance in especially tricky times for retailers.

The company has been revamping its stores to achieve a more modern look, and giving a higher profile to brands such as Ted Baker and Jasper Conran.

A new flagship store in Liverpool is trading ahead of expectations, said Templeman.

"These are a good set of figures. We are outperforming the sector," he added.

The company insists interest payments on its £1 billion of debt are not a problem. Investors holding up to 45% of the stock have agreed to take a scrip dividend - more shares - in lieu of cash.

• Electricals giant Kesa today said sales have enjoyed a jump in recent weeks as football fans splashed out on new televisions to enjoy Euro 2008.

The Comet owner saw profit for the 15 months to the end of April slip somewhat to £141 million. It has lately been easily outperforming arch-rival DSG, which owns Currys.