Ashley offers Debenhams £40m Sports Direct loan

Sports Direct boss Mike Ashley has written to Debenhams chief Sergio Bucher urging him to accept a £40 million loan.

In a bluntly-worded letter first seen by The Daily Telegraph, Ashley claimed the department store has “zero chance of survival” and urged Bucher to accept a £40m interest-free loan from Sports Direct, which is Debenhams’ largest shareholder.

This came on the same day that Sports Direct unveiled it took a hit from the acquisition of House of Fraser, with underlying pre-tax profits falling 26.8 per cent to £64.4m in the 26 weeks to 28 October.

Debenhams said it would not accept Ashley’s offer as it “could affect the interests of other stakeholders”.