Mike Ashley’s Sports activities Direct stated it was contemplating a money provide to take over Debenhams because it fired the newest salvo within the tussle for management of the struggling chain.
Sports activities Direct already owns 30% of the division retailer enterprise however faces seeing its stake worn out, together with these of different shareholders, underneath a restructuring plan which might see lenders take over.
In a press release issued after the shut of buying and selling on Monday night, it stated that, alongside different choices, it was now contemplating a doable provide for the remainder of the corporate it doesn’t already personal, however with out giving a worth.
The corporate stated the provide was prone to be solely in money.
Sports activities Direct has in latest weeks already seen a collection of proposals to inject new funds into the chain – all on situation of Mr Ashley being put in as chief government – rejected by the Debenhams board.
Earlier on Monday, Sports activities Direct attacked Debenhams for rejecting these rescue plans – which embody a proposal final Friday to pay £100m for its Danish operation Magasin du Nord.
It argued that its method was higher than the “a number of insolvency processes” at present being thought of.
The division retailer stated final week there have been “apparent considerations” about handing the chief government function to Mr Ashley, on condition that Sports activities Direct already owns Home of Fraser – considerations dismissed by Sports activities Direct.
For its half, Debenhams is searching for a £200m lifeline from its lenders that would result in a debt-for-equity swap or pre-pack administration course of through which the lenders take management.
In its announcement on Monday night, Sports activities Direct stated its various plan of a doable money provide could be “compelling” for shareholders since it could enable them to grasp worth of their shareholdings.
It added: “Sports activities Direct would search to run the Debenhams enterprise for the advantage of all Debenhams stakeholders somewhat than for the advantage of Debenhams current lenders.”
Mr Ashley already controls massive swathes of the excessive road, having swallowed up Home of Fraser in addition to Evans Cycles final 12 months, and holding stakes in French Connection and Recreation Digital in addition to Debenhams.