Debenhams falls into hands of lenders after deal falls through with Mike Ashley
Debenhams, one of the largest retail outlets in Bury St Edmunds, has fallen into the hands of its lenders as part of an administration process.
Around 50 of the chain's 165 shops could close this year after a £200million offer from Sports Direct owner Mike Ashley was rejected last night (Monday, April 8).
The decision has wiped out shareholders, including Newcastle United FC owner Mr Ashley.
Debenhams employs around 25,000 UK staff. The Bury St Edmunds shop is a staple of the arc shopping centre. A list of the shops that will close has not yet been released.
The company will now look to sell its assets as a growing concern, while continuing to trade.
Terry Duddy, Debenhams’ chairman said: “It is disappointing to reach a conclusion that will result in no value for our equity holders.
“However, this transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans, while deleveraging the group’s balance sheet.
“We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio, in line with our previous guidance."