Sports Direct AGM: Board ‘mulled Debenhams and House of Fraser merger’
Merger plans for department store chains House of Fraser and Debenhams have been discussed by the Sports Direct board a director revealed today.
Talks about combining the two major high street retailers come a month after Mike Ashley, who owns nearly 30 per cent of Debenhams, snapped up House of Fraser, announcing that he wanted to turn the embattled retailer into the "Harrods of the High Street”.
The news emerged at Sports Direct’s annual general meeting (AGM), with independent shareholders expected to vote on the future of Mike Ashley’s role in the firm.
Ashley, who owns 61 per cent of the sportswear retailer, has reportedly attended the meeting despite previously saying he was too busy to attend.
Read more: Sports Direct chair Hellawell steps down after pressure from City adviser
Earlier this morning the retailer's chairman Keith Hellawell revealed he would step down after nearly a decade in the role, in a bid to stave off a potential shareholder revolt today.
Three shareholder advisory groups have urged investors to vote against the re-election of Ashley and Hellawell over Sports Direct’s alleged poor corporate governance and continuing concerns about employment practices.
The billionaire retail magnate and owner of Newcastle United has come under increasing fire for employment conditions at Sports Direct, which were branded as akin to those of a “Victorian workhouse” in a scathing MPs’ report in 2016.