JD Sports ‘interest will spark new hope among Debenhams’ 12,000 employees, who have endured years of uncertainty as a combination of heavy debt and changes in spending habits have plagued its business.
A source close to its finances said the chain retains valuable assets, including its online business, cosmetics department and some of its dealerships. Dozens of its 124 stores could be saved, the source said. Alternatively, Debenhams could still be dismantled for parts.
However, there remains concern that the chain could be liquidated if a rescuer cannot match the potential returns to creditors. the Specialist company Hilco has been lined up to sell its shares and end Debenhams if no deal can be reached at the end of what one side has described as a “chaotic” process.
Sir Philip Green, of which the Arcadia Group is one of Debenhams’ largest dealers, has approached lenders for around £ 30million in new funding to keep his retail empire afloat, Sky News reported.
A deadline to sell Debenhams has reportedly been extended following Boris Johnson’s imposition of a second foreclosure in England this month. Advisors are now rushing to find a solution before non-essential stores reopen in December for a truncated and crucial Christmas trading period.
JD Sports has rewarded investors by more than quadrupling its stock price over the past five years, catapulting the company into the FTSE 100.
With a market value close to £ 8bn, the retailer dominates Mr. Ashley‘s Frasers Group, formerly known as Sports Direct, worth £ 2.4 billion.