Debenhams recovery plan wins Mike Ashley backing

MIKE Ashley has increased his stake in ailing Debenhams to more than 20pc.

A stock exchange announcement yesterday showed that Sports Direct has upped its total position in the department store chain from 19pc to 21pc.

52-year-old Ashley’s interest in Debenhams was first revealed in 2014 and he has been steadily increasing his stake in the high street stalwart this year through direct shareholdings and other investments.

The Newcastle United owner is known for building stakes in his rivals, having previously taking positions in JD Sports and House of Fraser.

Earlier this month, Ashley snapped up a £3.5m interest in five-a-side operator Goals. In July, he acquired a 26pc stake in Game Digital and also owns large positions in French Connection and education retailer Findel. Debenhams shares rose 0.6pc, or 0.25p, to 40.75p. Ashley’s investment comes just weeks after he won a high court battle over a £15m deal allegedly made in a London pub. Investment banker Jeffrey Blue alleged that Ashley had agreed to pay him £15m if the Sports Direct’s shares doubled to £8 during a ‘night of heavy drinking’ at a London pub. But Mr Justice Leggatt ruled that no one would have thought that what Ashley said in the pub was serious. Blue told the court how Ashley would take naps in meetings and hold drink-fuelled management sessions – including one which ended in him vomiting in a fireplace.