Sports Direct mulls cash offer for Debenhams as Ashley looks to seize control
Sports Direct has said it is considering a bid for Debenhams just hours after owner Mike Ashley branded the troubled department store’s rescue plan “unworkable”.
The retail tycoon’s firm said in a statement after close this evening it was weighing up an offer for the firm “alongside other options”. It said the bid would likely be in cash, but reserved the right to vary the form of its offer.
Read more: Debenhams shares volatile after rebuffing latest Ashley bid
Sports Direct said it would seek to run the department store chain for the benefit of shareholders, rather than the lenders.
Debenhams announced on Friday it was seeking £200m of additional funds from lenders to allow it to implement a restructuring plan, and that some options would wipe out shareholders.
In the statement Sports Direct, which holds a 30 per cent stake in Debenhams, slammed the firm’s restructuring plan, saying it would have a negative impact on shareholders.
The potential bid is Ashley’s latest attempt to seize control of the ailing chain. The retail mogul has previously offered a £150m loan and the purchase of the company’s Danish business Magasin du Nord for £100m, both of which were rejected by the department store.
Read more: Debenhams flags 'obvious concerns' with Ashley's £100m CEO bid
The billionaire has also launched a failed attempt to oust almost all of Debenham’s directors and to appoint himself to the board.
Sports Direct must either announce a firm intention to make an offer or abandon its plan by 22 April.