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| Sports Direct buys 5% Debenhams stake | Sports Direct buys 5% Debenhams stake |
| (about 1 hour later) | |
| Sports Direct, the retailer owned by billionaire Newcastle United owner Mike Ashley, has purchased 4.6% of Debenhams shares. | Sports Direct, the retailer owned by billionaire Newcastle United owner Mike Ashley, has purchased 4.6% of Debenhams shares. |
| Sports Direct acquired 56.8 million shares in the department store, it told the London Stock Exchange on Monday. | Sports Direct acquired 56.8 million shares in the department store, it told the London Stock Exchange on Monday. |
| Debenhams shares fell sharply at the end of 2013, and it has warned Christmas trading was not matching its expectations and profits would be hit. | Debenhams shares fell sharply at the end of 2013, and it has warned Christmas trading was not matching its expectations and profits would be hit. |
| Sports Direct joined the FTSE 100 in September 2013. | Sports Direct joined the FTSE 100 in September 2013. |
| Debenhams share price, which had recovered some of its lost ground by the end of last week, rose more than 5% in early trading after the announcement from Sports Direct. | |
| The department store chain, which has 240 stores in 28 countries, issued a profit warning on the last day of 2013, saying that it now expects pre-tax profits for the six months to April 2014 to be £85m, down from £115m in the same period the previous year. | |
| Sharp | Sharp |
| Michael Sharp, the chief executive of Debenhams, said at the time that the retail environment had been "extremely difficult" and "inevitably had an impact on both our sales and profitability". | Michael Sharp, the chief executive of Debenhams, said at the time that the retail environment had been "extremely difficult" and "inevitably had an impact on both our sales and profitability". |
| The chain is struggling to compete in the online sector and days after its profits warning its chief financial officer Simon Herrick said he would be leaving the company. | |
| Sports Direct was taken public by Mike Ashley in February 2007 and saw its share price rise by 86% in 2013 before it joined the FTSE 100, which is made up of the biggest companies listed in the UK. | |
| The ascent to FTSE 100 status, while other high street retailers have found times rather tougher, is partly because of the demise of almost all high street sporting goods rivals -such as JJB Sports. | |
| Lean | |
| The business is also regarded as a "lean" operation, with store closured if a location fails to meet targets. Sports Direct has also started to invest internationally in locations including Austria and the Baltic area. It also owns Sports World and Lillywhites stores as well as brands such as Slazenger and Dunlop. | |
| In 2012 Sports Direct bought 20 stores and all stock, from the administrators of one-time rival JJB Sports. | |
| There was also speculation in early 2013 that Mr Ashley may be interested in making a bid for House of Fraser or the collapsed retailer Republic. | |
| Mr Ashley is a well-known figure in the business and sporting worlds, and there have been fractious relations between him and some fans of his Newcastle United football club. | |
| In October 2013, hundreds of Newcastle United fans marched through the city to protest against the way Mr Ashley has been running the club. They were unhappy at the club's lack of signings and its sponsorship deal with pay-day loan company Wonga. |