Sports Direct International (SDI) raised its stake in Debenhams to nearly 30 percent, the threshold at which it would have to make a formal takeover offer for the department store group. Instead, SDI reportedly said that it wanted to form a tighter strategic partnership with Debenhams, as it increased its shareholding to 29.7 percent, up from 23.07 percent at the previous notification. Reuters quoted Liam Rowley, head of strategic investments at Sports Direct, saying that he saw huge value for both companies in a strategic partnership. Synergies could be achieved through the integration of the companies' web operations and there were opportunities to work together internationally, Rowley continued, adding that Sports Direct and Debenhams could complement each other well. SDI started amassing its stake in Debenhams in 2014 and it has described the investment as an opportunity for a strategic partnership. It may have helped to bring about the opening of nine Sports Direct concessions in Debenhams stores, but Bloomberg reported last year that four of them would close. SDI has a track record of acquiring stakes in other retailers. Among the latest investments was a stake in Game Digital, which should lead to the sale of video games at Sports Direct stores. Debenhams shares have been under pressure due to sluggish trading over the holiday season, with comparable sales down by 1.3 percent over the 17-week period until the end of the year.

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