Mike Ashley’s Sports Direct stepped up the pressure on Debenhams last night by announcing that it was considering a cash offer for the department store chain.
The surprise development came after the London stock market had closed and just hours after Sports Direct accused Debenhams of refusing to engage with it despite offering multiple proposals to help to rescue the chain, which is trying to refinance its £560m debt pile while turning around its operational performance.
In a statement released by Debenhams, the retailer noted Sports Direct’s announcement but said there is “no certainty that any offer will be ultimately forthcoming”.
The retailer said any offer would be “given due consideration” by the board but the company would continue its plan to secure funding to address its immediate funding requirements.
Sports Direct has until 5pm on the 22 April to make its intentions clear whether or not the company will make a firm offer for Debenhams.
Ashley, 54, who set up Sports Direct in 1982, has been trying to take control of Debenhams and last week his business offered to buy Magasin du Nord, Debenhams’ Danish business, for £100m, but was rejected.
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