The sports retailer is said to have been closing in on a deal up until the end of last week and was the firm’s last remaining bidder, which is in administration.
Retail juggernaut Arcadia’s collapse is believed to have been a factor in the company’s decision making, as Arcadia was the biggest concession operator in the department store chain.
Around 12,000 jobs with the company are at risk following this news, with Debenhams already having cut 6,500 jobs since May.
JD Sports shareholders reacted badly to the news of the potential purchase of Debenhams, with the retailer seeing a sharp fall in its share price last week, however it rebounded this morning following weekend reports claiming it was reconsidering this acquisition.
Debenhams is expected to go into liquidation, or face being wound down, if a buyer is not found immediately.
It is expected, if this were to happen, that buyers would be sought for its shops and the business’s other assets, such as stock.
Retail Sector has reached out to Debenhams and JD Sports for comment.