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Tag: Debenhams

Ashley backs challenge to Debenhams rescue deal

Ashley backs challenge to Debenhams rescue deal

Business
A deal that saved Debenhams from administration will be challenged in the High Court this week, putting the retailer's future back into doubt. A commercial landlord - backed by Mike Ashley's Sports Direct group - is fighting the plan which saw Debenhams agree to shut 50 stores and secure rent cuts on others in May.If successful, it could lead Debenhams to fall back into administration.The retailer said it was "extremely confident" the action would fail. Earlier this year, Debenhams fell into the hands of its lenders as part of an administration process, wiping out Mr Ashley's near-30% stake in the company. Debenhams creditors back turnaround plan Debenhams rejects Ashley rescue plan Shortly afterwards the creditors approved the rescue deal - or company vo...
Mike Ashley’s Sports Direct challenges Debenhams turnaround

Mike Ashley’s Sports Direct challenges Debenhams turnaround

Business
Mike Ashley's Sports Direct has launched a last-minute legal challenge to Debenhams' restructuring plans.Debenhams rejected two last-ditch takeover offers from Sports Direct before the keys to its shops were handed over to its lenders.Now Sports Direct has turned to the courts in a bid to overturn a company voluntary arrangement (CVA) that would see Debenhams closing 50 stores.Debenhams has called the challenge "spurious".A CVA is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts.Sports Direct mounted its complaint on Monday night, just hours before a standard 28-day window to appeal against the CVAs expired.It followed a decision by Debenhams' creditors on 9 May to try to improve the...
Debenhams CEO to leave troubled retailer

Debenhams CEO to leave troubled retailer

Business
Debenhams has confirmed that its chief executive Sergio Bucher will step down this week, days after the troubled retailer entered into administration and was taken over by its lenders.A search has begun for Mr Bucher's successor and in the meantime non-executive chairman Terry Duddy will assume the role of interim executive chairman. Before Debenhams fell into administration this month, Mr Bucher failed in being re-elected to the board at the last annual general meeting in January, after two major shareholders voted against him.However, in a rather unusual situation, the board and Mr Bucher agreed at the time that he should continue as CEO and report to the board.The outgoing CEO was Amazon's senior vice president of fashion before joining Debenhams in 2016. ...
Mike Ashley releases furious statement after Debenhams collapses

Mike Ashley releases furious statement after Debenhams collapses

Business
By Ganesh Rao, business reporter Mike Ashley has described the administration of Debenhams as a "national scandal", with the Sports Direct owner urging the process to be reversed.The embattled department store was immediately taken over by its lenders on Tuesday after a revised last-ditch offer by Mr Ashley was rejected. Debenhams stores are continuing to trade normally for now, but dozens of branches are already facing closure - and shareholders including Sports Direct, which owned a stake of almost 30%, have been wiped out.Mr Ashley, who has made numerous attempts at a takeover, said in a statement to the stock exchange: "As normal, politicians and regulators fiddled whilst Rome burnt."These politicians and regulators have proven to be as effective as a choc...
Debenhams rejects Mike Ashley’s £150m proposal

Debenhams rejects Mike Ashley’s £150m proposal

Business
Debenhams has rejected a £150m proposal made by Sports Direct as Mike Ashley attempts to prevent the department store from falling into the hands of its lenders.The latest plan from Sports Direct International - first revealed by Sky News - offered to underwrite a £150m rights issuance for the department store chain in exchange for lenders agreeing to write off £148m of debt. Sports Direct, which owns 30% of the struggling chain, wants to install Mr Ashley as chief executive as it seeks either to refinance the business or take it over entirely.But relations between the two companies have descended into acrimony with Sports Direct suggesting that members of the Debenhams board take lie detector tests over a disputed meeting.Without a deal between the two sides by the end of Monday, the 340-