Debenhams has gone into administration following rejection of rescue offer

Department store chain Debenhams has gone into administration following the rejection of a last-minute rescue offer by Mike Ashley.

Debenhams has entered administration after rejecting a £200m offer from Mike Ashley’s high street retailer Sports Direct.

Following an attempt to take over the business back in March, the retail magnate has been locked in tense negotiations with the chain.

The administration will see stores continuing to trade in the short term, while lenders take control of the business and plan to sell it on.

Debenhams Chairman Terry Duddy commented: “It is disappointing to reach a conclusion that will result in no value for our equity holders… We remain focused on protecting as many stores and jobs as possible.”

“In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing.”