Sports Direct said Debenhams’ current restructuring and refinancing process was “likely to result in an adverse outcome” for its existing shareholders.
The sportswear retailer has made several offers to the department store, including a £150m loan and proposing to acquire its Danish company Magasin Du Nord for £100m. Mike Ashley has been attempting to take control of Debenhams through these offers, stating his intention to remove all board members expect Rachel Osborne and appoint himself to an executive role.
Debenhams responded to Sports Direct’s offer today (26 March) and said an offer for the company itself would not address its “immediate funding requirement”. It said therefore, Debenhams would continue to obtain the funding required as outlined in its announcement on 22 March.
Sports Direct has until 22 April to announce a “firm intention” to make an offer for the company or not.