Mike Ashley’s Frasers Group has confirmed it is in talks over a “potential rescue transaction” for collapsed department store Debenhams.
The retailer said in a stock market statement that it was “in negotiations with the administrators of Debenhams’ UK business” on a possible deal.
The group, formerly called Sports Direct, said that it hoped a deal could be agreed and jobs at Debenhams saved after the COVID-19 pandemic sunk its business, but cautioned that the transaction was complicated and talks needed to take place quickly.
A former shareholder in Debenhams, Ashley’s Frasers Group has long-been linked to its rescue. Administrators for Debenhams said last week it would be wound-down, closing all its shops after 242 years in business and putting 12,000 jobs at risk.
The group statement added:
“Whilst Frasers group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia group, Debenhams’ biggest concession holder.
“There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.”
