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| Debenhams rejects higher Mike Ashley offer | Debenhams rejects higher Mike Ashley offer |
| (32 minutes later) | |
| Debenhams has rejected a new £200m offer from Sports Direct, made in the early hours of Tuesday, to pump money into the troubled department store. | Debenhams has rejected a new £200m offer from Sports Direct, made in the early hours of Tuesday, to pump money into the troubled department store. |
| On Monday, Debenhams turned down a similar proposal from Mike Ashley's company to put £150m into the retailer. | On Monday, Debenhams turned down a similar proposal from Mike Ashley's company to put £150m into the retailer. |
| The new offer was rejected by Debenhams' lenders after Mr Ashley continued to insist he was to be the firm's chief executive. | |
| Debenhams could go into administration later on Tuesday. | Debenhams could go into administration later on Tuesday. |
| The new offer from Sports Direct would have seen the company underwrite the raising of £200m by issuing new shares, higher than its previous proposal. | The new offer from Sports Direct would have seen the company underwrite the raising of £200m by issuing new shares, higher than its previous proposal. |
| Debenhams is expected to go through a pre-pack administration, which would mean current shareholders - including Mr Ashley who owns nearly 30% of the chain - would be wiped out. | Debenhams is expected to go through a pre-pack administration, which would mean current shareholders - including Mr Ashley who owns nearly 30% of the chain - would be wiped out. |
| While the shops would continue trading for now, Debenhams has proposed closing around 50 branches from next year and renegotiating rents with landlords to tackle its funding problems. | While the shops would continue trading for now, Debenhams has proposed closing around 50 branches from next year and renegotiating rents with landlords to tackle its funding problems. |
| Store closures | |
| Debenhams has been struggling for a while and issued three profit warnings last year. | |
| Towards the end of 2018, the chain announced it was increasing its store closure plans from 10 to 50 over a three to five-year period. | |
| The company said it was not ready to release a list of which shops may be affected. | |
| In February, it was revealed that the shutting of 20 of those stores could be brought forward if the department store chain took out a company voluntary arrangement (CVA). | |
| Debenhams has 165 stores and employs around 25,000 people. |