Lenders to Debenhams could consider a “pre-pack” administration in an effort to protect the struggling department store from a campaign by Mike Ashley’s Sports Direct to gain control.
Debenhams has been holding talks for weeks with its lenders about securing £150m of funds before a wider restructuring of more than £500m of debt next year. Gaining capital will be vital for Debenhams, which is in the midst of a turnaround.
It is trying to secure a funding deal before a meeting next month where Ashley, the chain’s largest shareholder, is seeking to install himself as chief executive and remove most of the board.
