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Debenhams Falls Into Administration As Lenders Take Control
9 April 2019, 13:08 | Updated: 9 April 2019, 13:18
Debenhams has fallen into administration and its lenders have taken control of the company.
Stores will remain open following a deal which saw lenders take control of two of the department store chain’s holding companies.
The move comes after Mike Ashley’s Sports Direct made a £200m rescue offer for Debenhams, which lenders rejected.
Lenders said the latest proposal was “not sufficient”.
Shareholders such as Sports Direct, which holds a 30% stake, will see their investments wiped out.
Chairman Terry Duddy says the firm will "continue trading as normal".
In a letter to shareholders, administrators wrote that the business had been “sold for a price which in our opinion is the best price reasonably obtainable at the time of sale”.
Debenhams employs 25,000 people in the UK with 166 stores. It’s believed that 50 stores have been selected for closure in the New Year.