Invesco dumps Debenhams

ONE of Debenhams’ largest investors has dumped its stock in the ailing department store.

invesco, which owned 58.49m Debenhams shares, or 4.8pc of the company, has sold as the firm battles for survival.

The move, by Debenhams’ fifth biggest shareholder, came as Sports Direct admitted it would make a swoop for the store if it fell into administration.

Chris Wootton, Sports Direct’s deputy chief financial officer, told the Financial Times that it was a strong possibility Debenhams could go bust. Sports Direct has written off the value of its 29.7pc stake in Debenhams. its shares are worth just over 3p, falling 2.7pc, or 0.09p. to 3.19p last night.

‘We’ve put £150m into the equity, now it’s a penny stock,’ Wootton said. ‘We’d rather have the share price go back to where it was. it can be pulled back from the brink if immediate action is taken.’

according to reports, Debenhams’ lenders are considering a pre-pack administration as one possible option for the firm.

Sports Direct boss Mike ashley, 54, has become increasingly frustrated with Debenhams after the retailer snubbed his offer of a £40m loan.

He is demanding a clear-out of the department store’s board apart from its finance boss rachel Osborne.

last week the Newcastle United owner told Debenhams bosses he would give them a £150m interest-free loan if they appointed him to the top role.

But Wootton suggested ashley may tone down demands to virtually clear out the boardroom if the offer is accepted.