Frasers’ Mike Ashley has swooped in with a last-minute bid to potentially rescue Debenhams, the beloved British department store chain at risk of closure. Following JD Sports’ exit from the bidding process, Ashley, known for his interest in acquiring Debenhams, made a cut-price offer to the company’s advisers over the weekend.
Reports indicate that Ashley’s proposed deal could value Debenhams at over £200 million, with a plan for Frasers Group to operate its 124 stores under a 12-month license. This move could potentially save around 12,000 jobs that are in jeopardy due to the looming liquidation of the iconic retailer.
Despite facing rejection in the past, particularly after offering £125 million earlier this year, Ashley remains determined to acquire Debenhams. The collapse of Arcadia, a major concession holder in Debenhams stores, added to the challenges faced by the department store chain.
Frasers Group’s finance chief, Chris Wootton, acknowledged that negotiations with Debenhams would be tough but expressed a commitment to preserving jobs. However, the hedge funds controlling Debenhams must decide whether to accept Ashley’s offer or opt for liquidation.
As Debenhams has begun a clearance sale in anticipation of closure, the fate of the company hangs in the balance. The ongoing talks between Mike Ashley and Debenhams add to the uncertainty in the retail industry.
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