Struggling department store chain, Debenhams has stated it would consider any firm takeover offer from Mike Ashley’s Sports Direct, but will continue with its emergency funding plans.
Ashley’s Sports Direct revealed after market close last night that it was considering making an offer to buy Debenhams.
However, Debenhams stated that given the “timetable associated with any public offer,” a bid from Sports Direct would not address its immediate financing needs, confirming that Sports Direct now has until 5pm on April 22nd to announce a firm intention, or walk away.
“Therefore, the company will continue with its plan to obtain the funding required, as outlined in Debenhams’ statement on March 22nd, 2019,” said the Department store brand.
Ashley’s move last night is the latest in a series of attempts to take control of the retail chain, which has so far rejected all of his offers, including a £150 million loan as well as a £100 million offer for the company’s Danish business Magasin du Nord.
On Friday last week, Debenhams declared it was seeking £200 million of additional funds from lenders to allow it to implement a restructuring plan, and that some options would wipe out shareholders.
Sports Direct – which holds a 29 per cent stake in Debenhams, said the firm’s restructuring plan would have a negative impact on shareholders.