THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
The Papers
Retail Solutions
Food & Drink
Interviews
Property
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Sports Direct offers Debenhams alternative loan in return for more equity

Following Debenhams’ announcement that it is in advanced talks with its lenders regarding additional loans of around £150 million, Sports Direct has said it would be willing to make an alternative proposal and provide the department store with a £150 million interest free loan.

DEPARTMENT STORES

Sports Direct offers Debenhams alternative loan in return for more equity

Following Debenhams’ announcement that it is in advanced talks with its lenders regarding additional loans of around £150 million, Sports Direct has said it would be willing to make an alternative proposal and provide the department store with a £150 million interest free loan.

In a statement, Sports Direct said £40 million would be used to repay Debenhams' bridge facility and the remaining £110 million would be made available for general working capital.

In return, Sports Direct would require an additional 5% stake in the department store which would take its shareholding to around 35%. If the 5% share issue was approved by Debenhams' shareholders, the loan would be be interest free. Otherwise it would bear interest charges of 3%. 

Sports Direct would also require that its chief executive Mike Ashley become a director and chief executive of Debenhams.

The news comes as reports emerge that Sports Direct has submitted a complaint to the FCA in which it has accused the Debenhams’ board of giving misleading advice to investors. Debenhams has rejected the complaint.

 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Conference
The HR Summit 2019
The HR Summit 2019
8 October 2019
Hallam Conference Centre, London W1W 6JJ
The 11th HR Summit 2019, Hallam Conference Centre, 44 Hallam St, Marylebone, London W1W 6JJ
AI in Retail Conference 2019
AI in Retail Conference 2019
16 October 2019
Cavendish Conference Center, London W1G 9DT
Digitally native competitors and demanding customers are forcing a new perspective in retail. AI and machine learning can help you step up to the challenges; and some ‘small and beautiful’ solutions can increase your conversion rates within just a few weeks.
Omnichannel Futures Conference 2020
Omnichannel Futures Conference 2020
5 February 2020
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy