Sports Direct makes Debenhams £150m offer

Sports Direct has made an offer to Debenhams to underwrite £150m equity issuance in Mike Ashley’s latest attempt to take control of the embattled department store.

The proposal is subject to the conditions that Ashley is appointed CEO of Sports Direct and Debenhams’ lenders agree to write-off (in aggregate) £148m of the department store’s debt. The company added that the offer would form part of a “comprehensive refinancing of Debenhams”.

The offer comes after Sports Direct challenged Debenhams’ executives Terry Duddy and David Adams to take a lie detector test, as it accused the company and its advisers of a “sustained programme of falsehoods and denials”.

The statement released on Sunday (7 April), said: “For the avoidance of doubt, it is Sports Direct’s contention that the board of Debenhams and its advisors have undertaken a sustained programme of falsehoods and denials. The fact that they can so openly lie in their recollection of joint meetings with Sports Direct is beyond the pale.”

Sports Direct also said Duddy and Adams should be suspended while the investigation took place.

Both Debenhams and Sports Direct are expected to make statements regarding the offer later today (8 April).