Sports Direct denies reports Mike Ashley may block sale of Debenhams’ Danish arm Magasin du Nord
Sports Direct have this evening denied reports its boss Mike Ashley is attempting to block a sale of Debenhams' Danish business Magasin du Nord.
Reports suggested Ashley had threatened to halt the £200m of the business by Debenhams, in which he already has a 30 per cent stake, in the hopes of forcing the business into administration before picking it up on the cheap and merging it with newly acquired House of Fraser.
But on Sunday evening Sports Direct strongly denied the report, claiming Debenhams had not formally approached Sports Direct with details of any offer for Magasin du Nord, adding: "we would of course consider any such approach on its merits at the time".
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"We do not want to see Debenhams fall into administration, and any suggestion to the contrary is irresponsible and incorrect," a spokesperson told City A.M this evening. "As a significant shareholder we would be immediately financially disadvantaged if that were to be the case – quite apart from concern for employees and suppliers.
"To the contrary we have been strongly encouraging the chairman, Ian Cheshire, that Debenhams should cut the dividend entirely and manage cash more prudently for sometime.
"Indeed Sports Direct has discussed various opportunities for business collaborations to support Debenhams over the last year or so, but the management/board of Debenhams have chosen not to move forward with these proposals, as is their right."
A Debenhams spokesperson declined to comment.
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