This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-25709718

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Sports Direct buys 5% Debenhams stake Sports Direct buys 4.6% Debenhams stake
(about 3 hours later)
Sports Direct, the retailer owned by billionaire Newcastle United owner Mike Ashley, has purchased 4.6% of Debenhams shares. Sports Direct, the retailer run by billionaire Newcastle United owner Mike Ashley, has bought 4.6% of Debenhams.
Sports Direct acquired 56.8 million shares in the department store, it told the London Stock Exchange on Monday. Sports Direct said the £46m purchase would allow the companies "to explore options at an operational level".
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, which issued a profit warning after poor Christmas trading, said it was "open-minded" about the move.
Sports Direct joined the FTSE 100 in September 2013. Sports Direct has 409 UK stores, and owns brands including Dunlop, Slazenger, and Karrimor.
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. Debenhams share price rose more than 5% in early trading after Sports Direct's announcement.
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. The department store chain, which has 240 stores in 28 countries, warned on the last day of 2013 that it expects pre-tax profits for the six months to April 2014 to be £85m, down from £115m in the same period the previous year.
SharpSharp
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, Debenhams' chief executive, 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.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. Rahul Sharma, from the retail consultancy Neev Capital, said that Debenhams had suffered from an identity crisis.
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. "Debenhams traditionally thrived on big promotions in the run up to Christmas, but last year everyone on the high street did the same thing. It didn't offer anything different. Its online offering was also weaker than it needed to be."
He added that there had been "problems of communication" between the management and investors.
Sports Direct was taken public by Mr Ashley in February 2007 and saw its share price rise by 86% in 2013, propelling it into the FTSE 100.
LeanLean
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. Neev Capital's Mr Sharma said that Sports Direct is "fairly unique" in that it is run differently from most other retailers.
In 2012 Sports Direct bought 20 stores and all stock, from the administrators of one-time rival JJB Sports. "Mr Ashley runs it like a portfolio. It is very much his company, and that is unusual for a High Street shop chain. When he sees something he wants to do, he goes for it.
"Sports Direct has changed the way that UK consumers shop for sporting goods and the suppliers and brands aren't always happy about it. There are well-documented disagreements with brands such as Adidas and Mr Ashley over the way he wants to sell products."
In 2012 Sports Direct bought 20 stores 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.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. 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.
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.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.