Debenhams swoop

MIKe Ashley has almost 30pc of stock in struggling department store Debenhams, after snapping up another chunk of shares.

the tycoon’s Sports Direct has increased its investment from just over 23pc to 29.7pc. Once Ashley passes 30pc he must launch a formal takeover bid.

Sports Direct said there was ‘huge value’ in forming a partnership. Liam Rowley, its head of strategic investments, said there was potential to merge online operations and work together internationally. ‘We believe Sports Direct can complement Debenhams very well,’ he said.

Debenhams said: ‘ Debenhams notes today’s announcement from Sports Direct, with whom we have an established and constructive relationship.

‘We continue to pursue our Debenhams Redesigned strategy, a key part of which is partnerships with other brands where there is an opportunity to improve the offer for customers.’

the strategy aims to boost online sales, revamp customers’ shopping experience and improve efficiency. the store’s sales fell 2.6pc over Christmas, prompting a profit warning which slashed its full-year expectations to between £55m and £65m. Analysts had previously forecast £83m.