As a result, the company's Chief Executive Richard Howson has stepped down to be replaced by Keith Cochrane on an interim period.
The move comes following a business review by consultancy KPMG, which unveiled £375m in provisions relating to the UK and £470m to overseas markets, the majority of which relates to exiting markets in the Middle East and Canada.
The news saw shares in the business crash down almost 40%.
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The Board announced it is now undertaking a "comprehensive review" of the business and the "capital structure, with all options to optimise value for the benefit of shareholders under consideration".
Philip Green, Non-Executive Chairman said: "Despite making progress against the strategic priorities we set out in our 2016 results announcement in March, average net borrowing has increased above the level we expected, which means that we will no longer be able to meet our target of reducing leverage for the full year.
"We have therefore concluded that we must take immediate action to accelerate the reduction in average net borrowing and are announcing a comprehensive programme of measures to address that, aimed at generating significant cashflow in the short-term.
"In addition, we are also announcing that we are undertaking a thorough review of the business and the capital structure, and the options available to optimise value for the benefit of shareholders. We will update the market on the progress of the review at our interim results in September."
(LM/MH)
