Mike Ashley’s Frasers Group confirms Debenhams rescue talks
Mike Ashley’s Frasers Group confirmed it is in negotiations with Debenhams for a potential rescue deal, a week after the department store fell into administration.
In a statement this morning, Frasers Group confirmed it is in talks with Debenhams’ administrators “regarding a potential rescue transaction”.
It came with the caveat that there was little time to thrash out a deal and “no certainty that any transaction will take place, particularly if discussions cannot be concluded quickly.”
“While Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the administration of the Arcadia Group, Debenhams’ biggest concession holder.”
The Sunday Times reported that Frasers was looking to close a deal that would see it operate Debenham’s 124 stores on 12-month licences.
Debenhams announced it was set to close last week, putting 12,000 jobs at risk in what was a difficult week for the British high street.
Ashley tried to buy Debenhams last April when it first fell into administration and was taken over by its shareholders.
Debenhams’ recent collapse came after JD Sports pulled out of talks to buy the department store chain following the Arcadia news.
Retail tycoon Philip Green’s Arcadia Group last week appointed administrators after it came under pressure from the impact of the pandemic.