Potential buyers interested in acquiring struggling retailer Debenhams have been given a tight deadline of three days to submit firm bids, as the fate of the chain and its 12,000 employees hangs in the balance. Advisors have set a deadline for interested parties, including rival Frasers Group, to make a binding commitment by Wednesday or risk being excluded from the process altogether.
While the possibility of new ownership is being explored, advisors are also considering other options such as liquidation or selling parts of the company to hedge fund lenders. The potential sale would not include the successful Danish Magasin du Nord operation, which is being handled separately. Despite closing some stores, Debenhams still operates 124 significant UK department stores and an online store. However, the company has been in administration since April, and the process of exiting this situation has proven to be more complex than expected.
As the deadline approaches, all eyes are on potential bidders, particularly Frasers Group, after Reliance Retail dropped out of the process. Reports indicate that Frasers Group has put forward an offer of around £125 million, although this is below what Debenhams’ advisors are aiming for. Frasers Group has raised concerns about the value of stock and a perceived lack of transparency in trading and store closures.
It is speculated that Frasers Group’s interest in Debenhams lies in acquiring stores that could be converted into its upscale Flannels chain or its Sports Direct operation. The coming days will be crucial in determining the future of Debenhams and its workforce, with stakeholders, employees, and customers eagerly awaiting the outcome.
For more information on the Debenhams sale process, visit this link. To learn more about the history of Debenhams and its impact on the UK retail industry, check out this article.
