Mike Ashley in last-ditch talks to buy Debenhams

Sports Direct owner confirms negotiations are ongoing

Shoppers queue outside Debenhams on Oxford St, London, on Saturday. Picture: Yui Mok/PA

Mike Ashley’s Frasers Group is in last-ditch talks to buy the ailing Debenhams department store in a move which could save thousands of jobs.

The owner of the Sports Direct brand confirmed it was in negotiations in an emailed statement and said “we hope to be able to save as many jobs as possible” at Debehhams, one of the UK’s most iconic retail brands.

Mike Ashley: We hope to be able to save as many jobs as possible.

News of Mr Ashley’s interest comes just a few days after Debenhams said it could have to liquidate the business after talks with JD Sports ended. Debenhams has been struggling for many years, weighed down by costly stores with hefty rents and large property taxes.

The failure of Debenhams, which employs 12,000 people, capped a terrible week for British retail after Philip Green’s Arcadia Group, the owner of the Topshop and Dorothy Perkins brands, filed for insolvency putting 13,000 jobs at risk.

Debenhams has 124 stores, all rented, and if a deal is completed Frasers could operate them on a 12-month licence while determining how many stores could be saved.

Any deal with Frasers would have to be better than the liquidation value of Debenhams and negotiations with FRP Advisory, the administrator that has been in control of the department store since April, were likely to centre on a value of around £280m (€310m).

Bloomberg