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Mike Ashley’s Frasers Group has entered discussions involving a possible takeover of Debenhams, the group confirmed today.
It comes as Debenhams collapsed into administration last week, placing 12,000 jobs at risk, after talks with JD Sports over a potential rescue deal failed.
The department store chain will continue to trade through its 124 UK stores, as well as online. However, If it does not receive any alternative offers from potential buyers it confirmed that UK operations will close.
While negotiations are now underway for a potential transaction, Frasers Group noted there was “no certainty” a takeover would take place, particularly if discussions were not concluded “swiftly”.
In a statement, Frasers Group said: “The company confirms that it is in negotiations with the administrators of Debenhams’ UK business regarding a potential rescue transaction for Debenhams’ UK operations.
“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.”
It added: “There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.”
