JD Sports Fashion is said to be studying a possible bid for Debenhams, the biggest chain of department stores in the U.K. with 124 stores and a web shop. According to reports, JD has been given access to its financial data, which was previously denied to Frasers Group. Frasers, which owns the House of Frasers department store chain as well as the Sports Direct retail business, was excluded from the auction for Debenhams for competition reasons and because it offered to pay only £125 million (€139m-$165) for the company, well below the minimum auction price of 300 million (€334m-$395m) set by its receivers. Mike Ashley, the chief executive and controlling shareholder of Frasers, is said to be looking now for potential partners in an improved offer for the chain. His company had previously built up a stake of 30 percent in Debenhams, but it was wiped out last year when its parent company was taken over by a consortium of lenders in the course of bankruptcy proceedings. Would JD be bluffing or is it serious about considering a move into the delicate department store business after its other previous costly acquisitions?
