Debenhams placed into administration as lenders seize control of the company

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Debenhams placed into administration as lenders seize control of the company


Debenhams stock
Debenhams stock

Debenhams has been placed into administration and the retailer’s lenders have seized control of the company.

Earlier, Mike Ashley’s Sports Direct made a revised £200 million rescue offer for Debenhams, delaying the department store’s prospective administration.

The billionaire had an offer to underwrite a £150 million rights issue rejected on Monday.

Lenders to Debenhams said the latest proposal, on the terms set out, including that Mr Ashley be made chief executive of the chain, was “not sufficient”.

Debenhams previously said in a statement: “The board confirms that it received a revised, highly-conditional, proposal from Sports Direct in the early hours of April 9, which indicated a willingness of Sports Direct to underwrite an equity issue of £200 million.

“The company’s lenders have confirmed to the company that the proposal, on the terms set out, was not sufficient to justify an extension to the April 8 deadline.

“The company anticipates making a further announcement during the course of the day following further discussions with its lenders.”

Debenhams then requested that its shares be suspended from trading with immediate effect, pending a further update.

The move does not have any immediate ramifications for Irish stores.

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Press Association

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