Mike Ashley’s Frasers Group in talks to buy Debenhams in rescue deal
Potential buyer warns ‘time is short’
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Mike Ashley’s Frasers Group has said it is in talks to buy Debenhams from administrators, a week after the British department store collapsed.
In a statement sent to the stock exchange on Monday, Mr Ashley’s retail group confirmed weekend reports that it could offer a potential “rescue transaction” for Debenhams.
Frasers expressed hope that a deal could be reached and that some of the 12,000 jobs that are at risk could be saved. However, it warned that “time is short” and that its position was complicated by the recent administration of Arcadia Group, Debenhams’ biggest concession holder.
“There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly,” Frasers said on Monday.
Last week, the collapse of both Debenhams and Arcadia Group, which owns shops including Burton and Topshop, put thousands of jobs at risk.
Debenhams’ future was left in precarious situation on Tuesday when JD Sports withdrew from talks to rescue the 242-year-old business.
The confirmation that Frasers Group had entered discussions with Debenhams’ administrators comes shortly after its finance boss Chris Wootton indicated that it might be interested in buying the department store.
Speaking to The Sunday Times, Mr Wootton said: “We hope to be able to save as many jobs as possible. However, we have found that Debenhams has been overly reliant on Arcadia for many years, and, with the administration of Arcadia last week, as well as no end in sight to the outdated business rates regime which unduly punishes the likes of Debenhams, it may be a bridge too far.”
Despite a busy few days for England’s high streets over the first weekend since the second national lockdown lifted, footfall is still down 29 per cent from last year, according to the retail analysts ShopperTrak.
Andy Sumpter, a consultant at ShopperTrak, said that many shops “are still keenly feeling the impact of lockdown”.
Additional reporting from PA
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments