Sports Direct is considering a cash bid for Debenhams in its latest attempt to prevent a financial rescue plan that could wipe out its stake in the ailing department store.
Mike Ashley’s retail group said it was contemplating making the offer “alongside other options”. It said the offer was likely to be in cash but it reserved the right to vary the form and mix of its offer.
In a statement issued to the stock market after the London exchange closed on Monday, Sports Direct said such a bid would be “compelling for Debenhams shareholders” as it would allow those who wished to cash in their investments to do so.
Sports Direct, which owns nearly 30% of Debenhams, said it would would seek to run the department store chain “for the benefit of all of Debenhams stakeholders rather than for the benefit of Debenhams existing lenders”.
More details soon …