Debenhams bondholders rebuffed Ashley’s bid to be chief executive
Ashley Armstrong
Oliver Gill DEBENHAMS bondholders rejected Mike Ashley’s attempts to install himself as chief executive of the department store chain just days before the sportswear tycoon went public with his boardroom assault, The Daily Telegraph understands.
The bondholders are crucial to the chain’s survival as they control its £300m debt, that must be refinanced in the coming months.
Shares in Debenhams leapt by 16pc after the Sports Direct tycoon announced on Thursday evening that he would call a shareholder meeting to oust the entire board, bar finance boss Rachel Osborne, and install himself at the helm.
He successfully pushed out Debenhams’ chairman Ian Cheshire and kicked boss Sergio Bucher off the board in January. Mr Ashley said he was willing to relinquish his role at Sports Direct to take charge of Debenhams.
Analysts said Mr Ashley is reluctant to table a bid for Debenhams, even though it is worth just £43m, given its pension liabilities. Under UK company law Debenhams has 21 days to announce a meeting date and a further 28 days to host the vote. Debenhams shares closed up 0.5p at 3.5p.
Meanwhile, a five-a-side pitch operator backed by the sportswear tycoon was rocked by “accounting errors”, sending its shares plunging 32pc yesterday.
Goals Soccer Centres warned annual profits would be “materially below” City expectations and said it had breached banking terms.
The company declined to comment on the precise financial impact of its problems but said: “The board, together with the auditors, are working to resolve certain accounting errors, and are reviewing some accounting practices and policies.”
A banking covenant breach had been triggered at the end of December. “We are in discussions with the bank with a view to agreeing renegotiated facilities,” it said, adding that it would take “a more prudent approach… going forward”.
Sports Direct is Goals’ biggest shareholder, owning almost a fifth of the Aim-quoted company. Shares in Goals dropped 18p to 38p.