22 Mar 2019 12:04
22 March 2019
DEBENHAMS PLC
Response to proposal from Sports Direct
The board of Debenhams confirms that it has received a proposal from Sports Direct International plc in connection with a proposed acquisition of Magasin du Nord, conditional upon Mike Ashley being appointed as the CEO of Debenhams. This proposal comes without any commitment to participate in the wider financing solution.
The board has responded to Sports Direct directly, that, as with all other proposals received to date from Sports Direct, it does not address the company's funding and restructuring requirement, while balancing the interests of all stakeholders.
Magasin is a key part of the Debenhams group, is cash flow generative and a meaningful contributor to group profits. As such, Magasin is an important part of any lending proposition and therefore any broader solution that protects value for the group.
Further, there are obvious concerns with the proposal that Mike Ashley becomes CEO of Debenhams given that Sports Direct owns our direct competitor House of Fraser.
The board has remained open to engagement with Sports Direct throughout its refinancing process and has provided clear guidance on what would represent workable solutions that would allow Sports Direct to participate while also protecting the interests of other stakeholders. This guidance has been repeatedly ignored by Sports Direct.
Debenhams continues to make progress with its refinancing and restructuring discussions with existing lenders, Noteholders and other stakeholders. The board remains open to constructive involvement from Sports Direct and other stakeholders in this process.
[ENDS]
Enquiries:
Brunswick Group Tim Danaher/Craig Breheny/Fiona Micallef-Eynaud
020 7404 5959
debenhams@brunswickgroup.com