V&D has been saved from bankruptcy after its owners, banks and landlords reached an agreement on how to solve the department store group’s short-term financial problems.

According to the Financieele Dagblad, the deal ensures the company has enough working capital to pay wages, property rent and its suppliers’ bills.

The short-term solution involves lower rents on the company’s 63 locations throughout the Netherlands, broadcaster Nos says. A start has also been made on a long-term solution.

Earlier this month, V&D said it was cutting staff pay by 5.8% and wanted its landlords to grant a four-month rent holiday.

‘We are very pleased to have reached this agreement. Jobs will be preserved and V&D will remain a trusted part of the retail landscape,’ chairman Don Roach said in a statement.

No agreement has yet been reached with the unions who are planning to take V&D to court over the compulsory wage cuts.