Member Article

Mike Ashley’s Sports Direct buys 4.63% stake in troubled Debenhams

Sports Direct have acquired a 4.63% stake in fashion retailer Debenhams.

Newcastle United owner Mike Ashley’s successful sports store chain has bought 56.8 million shares in the firm, which has reported poor Christmas sales.

According to a note to the London Stock Exchange, the buy-up took place without prior knowledge of the Debenhams board of directors.

Sports Direct said it was keen to “explore options at an operational level to work together with Debenhams to create value in the interests of both Sports Direct’s and Debenhams’ shareholders.”

In response, a statement from Debenhams read: “Debenhams is open minded with regard to exploring operational opportunities to improve its performance, alongside its own existing and planned initiatives, in order to create value for all Debenhams shareholders.”

Debenhams’ CFO resigned on January 2, just days after the business issued a profit warning over lacklustre Christmas sales.

This was posted in Bdaily's Members' News section by Tom Keighley .