Debenhams set to snub Ashley loan, say reports

Mike Ashley is set to miss out on taking control of Debenhams after the struggling department store revealed it is close to sealing a £200m funding deal.

Sky News reports that Debenhams could announce it has secured the funds it needs via two separate sources.

If it happens, the move will stymie the Sports Direct owner’s plans to step down from the Shirebrook company and try and persuade shareholders that he should be installed as Debenhams’ new boss with the offer a £150m loan.

At the the time, Debenhams said: “Debenhams acknowledges Sports Direct’s statement and confirms receipt of its proposal to provide a £150m, unsecured 12 month term loan to the company, subject to certain conditions.

“Any third party loan offer on these terms would require both the consent of our RCF Lenders and Noteholders and material amendments to existing facilities.

“Nevertheless, the board will give careful consideration to the proposal and will engage with Sports Direct and other stakeholders regarding its feasibility in the interests of all parties.”

Sky News said Debenhams could land the new deal, which is £50m than Sport Direct offered it last week, either late this week, or early next.