MERGER TO SAVE FRASER?

Billionaire Mike Ashley (right) could merge newly bought House of Fraser with struggling rival Debenhams, say analysts.

Speculation has been fuelled by Ashley’s Sports Direct owning 30% of Debenhams.

The tie-up would have been unthinkable until now, but comes amid pressure to slash costs. Debenhams’ share price jumped more than 4% yesterday.

Neil Wilson of markets.com said: “A move to effectively consolidate the two troubled department store chains into a single offering looks to be the only viable solution.” But retail analyst Richard Hyman warned: “Two dinosaurs together simply makes a bigger dinosaur.” It came as top ratings agency Moody’s downgraded House of Fraser. They warned that the move “reflects the high expected losses” for creditors as a result of the deal.