Will JD Sports Bail Out Debenhams?
JD Sports has emerged as a serious contender to rescue Debenhams from their financial deprivation during this most turbulent of pandemic times.
This potential takeover would significantly escalate the sports shop tycoon’s high street rivalry with Mike Ashley, owner of Debenham’s (30% of it, anyway). The company is understood to be examining Debenhams’ finances in a secure data room, having been granted increased access in the last fortnight.
‘Debenhams planned to cut 2,500 jobs across its stores and warehouses.‘
JD Sports has been granted access into inspecting the funds and financial history of Debenham’s, and they are using that privilege to shed light on what they may be getting themselves into. Debenhams was among the hardest hit on the UK high street when COVID-19 struck, which mounted further pressure on the retailer’s already fragile finances.
Back in August this year, it emerged that Debenhams planned to cut 2,500 jobs across its stores and warehouses. That’s how bad the problem has become, and it doesn’t seem to be getting any better for them. Mike Ashley’s sports good store, Frasers, owns about a third of the shares in Debenhams and when they went into administration back in April – for the second time in roughly a year – which will certainly be a concern to the former Newcastle United owner.