Debenhams rejects Mike Ashley’s bid

Debenhams has dismissed a bid for its Danish stores from Mike Ashley as it confirmed plans to raise £200m in fresh loans in a deal that could wipe out shareholders including his Sports Direct group.

Sports Direct said it had offered at least £100m for the Magasin du Nord chain, in an apparent attempt to hand Debenhams’ board an alternative to a rescue deal involving a debt for equity swap.

On Friday, Debenhams confirmed its plan to borrow up to £200m more would give it time to restructure but could wipe out shareholders, including Sports Direct, which has a near-30% stake and is vying to take control of the department store group. This month Sports Direct called a shareholder meeting in which Ashley is seeking to oust all but one
Debenhams director and install himself as chief executive.