(Alliance News) - Frasers Group PLC on Monday said it is in negotiations with the administrators of Debenhams' UK business regarding a potential rescue deal for the UK operations of the troubled department store chain.
Mike Ashley's Frasers, which owns department store House of Fraser and sportswear retailer Sports Direct, said that, while it hopes that a rescue package can be put in place, "time is short".
In addition, Frasers said the situation is "further complicated" by the recent administration of the TopShop owner Arcadia Group, which is Debenhams' biggest concession holder. Arcadia's brands take out space in Debenhams stores.
Philip Green's Arcadia Group, which includes Topshop, Burton and Dorothy Perkins, collapsed into administration last week - placing 13,000 jobs at risk.
Frasers added that there is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.
Frasers was down 2.9% at 421.20 pence each on Monday.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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Frasers Group (FRAS)
