Latest Share Chat

Debenhams Share News (DEB)

Debenhams Information

There is currently no data for DEB

Ashley offers Debenhams £150m loan - with strings attached

Thu, 14th Mar 2019 07:25

(Sharecast News) - Sports Direct has offered Debenhams an alternative to the £150m loan it is seeking, with the proviso that Mike Ashley would take over as chief executive.Debenhams, which has net debt of around £286m and a committed debt facility of £520m that expires next year, said on Monday that it was in "advanced negotiations" with lenders about a new £150m loan, around £40m of which would be used to repay the bridge loan announced on 12 February.Looking to protect and advance its interests as the owner of a 30% stake in Debenhams, Sports Direct said in a Wednesday evening announcement that it would offer the embattled department store group a £150m unsecured 12-month term loan on or before 31 March, in return for a further 5% stake or payment of 3% interest on the loan.The FTSE 250 sportswear retailer, which also owns the House of Fraser department store chain, said £40m could be used to repay the £40m bridge facility and that the remaining £110m would be available for general working capital.Debenhams' independent shareholders would, it was suggested, decide whether to issue 5% of new shares at the prevailing market price to Sports Direct, increasing its shareholding to almost 35%.If the 5% share issue was agreed, this would normally trigger full takeover proceedings, but Sports Direct wants a 'whitewash' to be approved by Debenhams' independent shareholders, as it seems reluctant to go so far as this.If this is approved, the £150m loan would be guaranteed to be interest-free, Sports Direct said, but if not then the loan would bear interest at 3%. Either way, it wants Mike Ashley to be made director and chief executive of Debenhams, as it proposed last week as part of an extraordinary shareholder meeting that would see the removal of all but one of the current board.Debenhams, which is thought to be looking at a larger refinancing and a Company Voluntary Arrangement that would involve the closure of stores and rent reductions across the rest of its estate, said that any third party loan offer on these terms would require both the consent of its current credit facility lenders and bond noteholders, as well as requiring material amendments to existing facilities."Nevertheless, the board will give careful consideration to the proposal and will engage with Sports Direct and other stakeholders regarding its feasibility in the interests of all parties."Independent retail analyst Nick Bubb said: "Amazingly, Debenhams hasn't this time sent him away with a flea in his ear"."Tactically, that might well be the right way to respond, but Debenhams would have to be desperate to take the plan seriously."Peel Hunt analyst John Stevenson agreed that the Debenhams response this morning was "remarkably open" but he expected the board will still ultimately knock back the proposal.Sports Direct also increased its stake in Game Digital to 28.43% on Wednesday, from 25.75%.

More News

19 Apr 2018 10:50

WINNERS & LOSERS SUMMARY: Ultra Electronics Slides On Corruption Probe

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.----------FTSE 100 - up 4.2%. The advertising firm was enjoying a a

19 Apr 2018 07:01

LONDON MARKET EARLY CALL: Stocks Called Higher As Commodities Surge

LONDON (Alliance News) - Stock prices in London are seen opening higher on Thursday, continuing gains made on Wednesday, as a falling pound helps overseas exposed stocks and a surge in commodity a

29 Mar 2018 17:05

UPDATE 1-Britain's FTSE posts worst quarter since 2011

* FTSE 100 up 0.17 percent on the day * FTSE ends first quarter with 8.2 percent loss * GKN surges after Melrose bid acceptance (Adds closing prices) By Kit Rees and Julien 29

29 Mar 2018 10:10

Britain's FTSE heads for worst quarter since 2011

(There will be no London-based FTSE report on Friday March 30 and Monday April 2 due to public holidays in the UK.) * FTSE 100 up 0.4 pct *

21 Mar 2018 15:57

Irish consumer prices may rise by 3 percent in "hard Brexit"

DUBLIN, March 21 (Reuters) - Irish consumer prices might rise as much as 3.1 percent, or 1,360 euros per household, if Britain's exit a

7 Mar 2018 01:18

PRESS DIGEST- British Business - March 7

March 7 - The following are the top stories on the business pages of British newspapers. Reuters has not verified these stories and does not vouch for their accuracy. The Times - Plc

2 Mar 2018 14:37

BUZZ-UK retail: analysts stress test the sector after brutal week

** The collapse of two high-profile British retailers and signs of stress at Carpetright made for a grim week for a sector battling with online competition and weak consumer spending ** R a

28 Feb 2018 14:28

UPDATE 1-Tough UK retail market claims high street stores Toys R Us, Maplin

* Toys R Us, Maplin both enter administration * Maplin CEO blames external factors * Hedge funds betting against sector as others seek to restructure (Adds more sector context, Feb -

16 Feb 2017 06:47

UK Companies Named And Shamed For Underpaying Workers

22 Jan 2017 09:00

UK high street retailers race to keep up with online demand

By Kate Holton LONDON, Jan 22 (Reuters) - British fashion retailers will switch their spending firepower to technology from the high street in 2017 after online shopping became the key driver of sales growth over the all-important festive period. Marks & Spencer is investing in apps,

13 Jan 2017 09:27

Friday broker round-up

(ShareCast News) - Tesco: Goldman Sachs reiterates Sell on target price of 150p. Ladbrokes Coral: Barclays starts coverage with Overweight (previously Rating Suspended) on target price of 160p. Premier Oil: Barclays upgrades to Equal Weight on target price of 100p. Randgold Resources: Berenberg up

12 Jan 2017 10:14

UPDATE 1-Perfume, lingerie drive strong Christmas sales at Debenhams

(Adds CEO comment, analyst comment, share price) By Sarah Young LONDON, Jan 12 (Reuters) - Debenhams, Britain's No.2 department store chain, grew sales over its Christmas trading period, as customers bought more make-up, fragrances and lingerie, showing a strategy to shift away from f

12 Jan 2017 08:09

Debenhams beats expectations for Christmas trading

(ShareCast News) - Debenhams reported better than expected Christmas trading, with like-for-like sales at the department store group strengthening into January and profit margins remaining in line with targets. Group LFL sales in the 18 weeks to 7 January, which represents the first quarter and a ha

12 Jan 2017 07:30

Debenhams says sales rise 5 pct in 7-week Christmas period

LONDON, Jan 12 (Reuters) - Debenhams, Britain's No.2 department store chain, posted a 5 percent rise in like-for-like sales in the seven-week Christmas period, buoyed by a plan to sell more beauty and gift products rather than clothing. Debenhams said on Thursday that in the seven weeks to

11 Jan 2017 08:48

UK department store House of Fraser reports 2.7 pct rise in sales

LONDON, Jan 11 (Reuters) - British department store House of Fraser on Wednesday reported a 2.7 percent rise in underlying sales over the Christmas period, helped by record trading in the last two weeks of December. House of Fraser also said that Black Friday sales rose 2.7 percent compared

Latest Share Chat

Debenhams Share News (DEB)

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Ashley offers Debenhams £150m loan - with strings attached

Login to your account

Quickpicks are a member only feature

Login to your account