Debs mulls Ashley offer

DEBENHAMS said it is ‘carefully considering’ an offer of a £150m loan from sports Direct tycoon Mike ashley.

ashley made the move on Wednesday night, saying he would provide the unsecured loan interest free if sports Direct is given an additional 5pc stake.

this would allow ashley, 54, to seize control of Debenhams and install himself as chief executive. He already owns a 29.7pc stake, just under the 30pc threshold required to make a formal bid.

a Debenhams spokesman said the loan would require the consent of its existing lenders. the spokesman added: ‘nevertheless, the board will give careful consideration to the proposal and will engage with sports Direct and others regarding its feasibility in the interests of all parties.’ But a source close to Debenhams accused ashley of ‘headline grabbing action’.

it is understood that despite ashley’s keen interest to take over as chief executive of Debenhams, he has not yet approached the board with a business plan.

ashley said he will step down as chief executive of sports Direct if he is brought in to run the department store.