Debenhams plc Response to proposal from Sports Direct (7560T)
22 Mars 2019 - 1:04PM
UK Regulatory
TIDMDEB
RNS Number : 7560T
Debenhams plc
22 March 2019
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
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END
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March 22, 2019 08:04 ET (12:04 GMT)
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