Ashley set to make cut-price bid for Debenhams

Mike Ashley is set to make a £200m offer for parts of the failed Debenhams business in a bid to “save as many jobs as possible”.

The Frasers Group boss says he wants to buy up the most valuable parts of the stricken retailer after it went into administration last Tuesday, putting 12,000 jobs at risk.

In a statement this morning (December 7), Frasers Group said: “The company confirms that it is in negotiations with the administrators of Debenhams’ UK business regarding a potential rescue transaction for Debenhams’ UK operations. Whilst Frasers Group hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia Group, Debenhams’ biggest concession holder. There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.

Debenhams collapsed the day after Arcadia Group, whose clothes it had stocked in large numbers.

Wootton told The Sunday Times yesterday (December 6): “We have found that Debenhams has been overly reliant on Arcadia for many years, and with the administration of the Arcadia Group last week, as well as no end in sight to the outdated business rates regime which unduly punishes the likes of Debenhams, it may make this a bridge too far for the Frasers Group.”

Administrators from FRP and investment banker Lazard are looking for £300m for the Debenhams business.