Frasers Group in talks to rescue Debenhams
BID TO SAVE STORES NEEDS TO BE ‘CONCLUDED SWIFTLY’
DERBYSHIRE-based Frasers Group has confirmed it is in rescue talks for collapsed department store Debenhams.
Frasers Group, owned by Mike Ashley and based at Shirebrook, said in a stock market statement that it was “in negotiations with the administrators of Debenhams’ UK business” on a possible deal.
Last week Debenhams confirmed that a liquidation process had started, putting 12,000 jobs at risk, after JD Sports pulled out of a rescue deal.
It followed news that Topshop owner Arcadia was going into administration in one of the worst weeks on the UK high street.
Debenhams said it would keep trading through its 124 UK stores and online in a bid to clear stock.
It said its UK operations would close if there were no alternative offers for the business.
There are two Debenhams stores in Derbyshire – one at the Derby Centre, formerly Intu, and one in Chesterfield.
In a statement yesterday, Frasers Group said: “The Company confirms that it is in negotiations with the administrators of Debenhams’ UK business regarding a potential rescue transaction for Debenhams’ UK operations.
“Whilst 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 recent administration of the Arcadia Group, Debenhams’ biggest concession holder.
“There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.”
Frasers finance director Chris Wootton signalled over the weekend that his company might be interested in a deal for Debenhams, in an interview with the Sunday Times.
“We hope to be able to save as many jobs as possible,” he told the paper.
“However, we have found that Debenhams has been overly reliant on Arcadia for many years, and, with the administration of Arcadia last week, as well as no end in sight to the outdated business rates regime which unduly punishes the likes of Debenhams, it may be a bridge too far.”