JD Sports Fashion has reportedly entered exclusive negotiations for the acquisition of Debenhams, the struggling British department store chain, with FRP and Lazard, which are advising the bankrupt company’s receivers. According to the reports, JD is particularly attracted by Debenhams’ website and the locations of some of its 124 stores, but it may close down half of them depending on negotiations with the landlords. JD’s acquisition of Britain’s oldest department store chain would be a big blow to Mike Ashley and his Frasers Group, which already owns another department store chain, House of Fraser, in addition to Sports Direct and other assets. Its initial investment in 30 percent of Debenhams’ shares was wiped out as its creditors took over the business. It was excluded from making a bid, for competitive reasons and because it was offering too little. Meanwhile, Frasers Group has raised its stake in Mulberry, a British brand of fashionable leathergoods, to 36.82 percent. It will have until Dec. 17 to decide whether it wants to bid for the remaining shares.

Topics