Debenhams considers Mike Ashley’s £150m loan offer
Debenhams said it will give “careful consideration” to Sports Direct’s proposed £150m loan this morning, after receiving the offer last night.
Read more: Sports Direct accuses Debenhams of 'deliberately misleading' the market
The struggling department store chain received the 12-month loan offer from billionaire Mike Ashley last night, as the retail magnate accused the board of “deliberately misleading” the markets.
He offered the lifeline as he attempts to install himself on the high street stalwart’s board, after Debenhams had revealed it is close to securing a £150m loan with other lenders.
“The board will give careful consideration to the proposal and will engage with Sports Direct and other stakeholders regarding its feasibility in the interests of all parties,” Debenhams said.
“Any third party loan offer on these terms would require both the consent of our RCF Lenders and Noteholders and material amendments to existing facilities.”
Ashley wants to kick out the Debenhams board, apart from new CFO Rachel Osborne, and appoint himself in their place.
Sports Direct, which has a 30 per cent stake in Devenhams, also revealed yesterday that it has written to the Financial Conduct Authority to air concerns that Debenhams trading updates have misled investors.
The retail issued another profit warning earlier this month, admitting it is unlikely to hit a target it set only in January.
Sports Direct said the New Year trading update was therefore “at best, impossibly optimistic or at worst deliberately misleading”.
Ashley’s firm added that Debenhams boss Sergio Bucher and his board “have no place leading a PLC or making public statements to the market”.
Read more: Debenhams hits back at Ashley with plans to raise £110m
Debenhams retorted that these claims were “unfounded and self-serving”.