There is a fresh glimmer of hope for Debenhams. Frasers Group, owned by controversial businessman Mike Ashley, is negotiating with the department store chain about a potential rescue.
Old acquaintances
According to Retail Gazette, this weekend the British retail tycoon has revived its interest in taking over Debenhams. Ashley’s move comes a week after JD Sports withdrew from exclusive takeover talks with Debenhams. This decision, in turn, was partly due to the collapse of Arcadia Group, the largest concessionaire in the department store chain.
JD Sports was considered to be the last lifeline for Debenhams, but that notion excluded Ashley’s interest. Frasers Group, which includes Sports Direct, Evans Cycles and House of Fraser, is making an ultimate attempt to take over the chain. Among the British press, the figure circulating is 200 million pounds (approximately 220 million euros).
Arcadia remains an issue
It is not the first time Ashley is showing interest in Debenhams. Frasers Group was one of the acquisition candidates earlier this year when it became clear that the department store chain would be sold.
Also last year, Ashley made several attempts to take over the chain. Frasers Group was Debenhams’ largest shareholder at the time, but the interest was wiped out at once when the over-indebted department store chain fell into the hands of a consortium of banks and investors.
Chris Wootton, financial director of Frasers Group, already stated that he wants to save as many jobs as possible. At the same time, he warned for exaggerated optimism, as Debenhams has been too dependent on Arcadia Group for years, a circumstance not contributing to immediate solutions.
