Monday 18 March 2019 4:51 pm | Updated: Monday 03 June 2019 12:14 am

Debenhams pressure mounts amid Sports Direct comments

The war of words between Debenhams and retail tycoon Mike Ashley escalated once again this morning after Sports Direct’s finance chief confirmed City speculation that it would look to buy the department store chain if it collapsed into administration.

Sports Direct’s finance chief Chris Wootton, who could potentially become Sports Direct boss if Ashley takes over the running of Debenhams, told the Financial Times that while administration was “not the outcome we want”, it was a distinct possibility.

Wootton added that the company had been left with “no option but to go nuclear” after being "led down the garden path for weeks".

One source close to Debenhams hit back at the latest remarks, telling Morning Wire that the comments were "self-serving and baseless" and insisting that "Debenhams has outlined a restructuring plan that everyone other than Ashley is relatively happy with".

The latest tussle comes after Sports Direct accused the Debenhams board of "deliberately misleading" the market last week, writing to the Financial Conduct Authority (FCA) with concerns that recent trading updates have misled investors and further called into question the competence of the board.

The retailer issued another profit warning earlier this month, admitting it is unlikely to hit a target it set only in January.

Sports Direct said the New Year trading update was therefore "at best, impossibly optimistic or at worst deliberately misleading".

On Wednesday Ashley also offered to bail out the beleaguered department store chain with an interest-free £150m loan as part of a deal that would make Ashley chief executive.

"The board will give careful consideration to the proposal and will engage with Sports Direct and other stakeholders regarding its feasibility in the interests of all parties," Debenhams responded.