Mike Ashley lashes out at Debenhams after latest tilt rebuffed

Sports Direct has criticised Debenhams, after the beleaguered department store refused to sell billionaire Mike Ashley its Danish business.

Ashley, who controls Sports Direct and owns just under 30% of Debenhams, last week offered to buy Magasin Du Nord for £100m in cash. In return, Ashely would become chief executive of Debenhams.

But Debenhams – which is in talks with its lenders over a £200m cash injection as it seeks to refinance and stave off administration – rejected the bid outright. It argued that Magasin Du Nord was “a key part of the Debenhams group, is cash flow generative and a meaningful contributor to group profits”.

It added: “As with all other proposals received to date by Sports Direct, it does not address the company’s funding and restructuring requirement, while balancing the interests of all its stakeholders.”

But on Monday, the row escalated as Sports Direct hit back. It reiterated that the offer for Magasin Du Nord represented “in excess of fair value” and criticised the board for not providing further details on the valuation, as requested.

It continued: “Sports Direct’s representatives and advisors have participated in discussions with Debenhams’ advisory group. However, it cannot be said that the board of Debenhams has actively engaged in these discussions or are open to any form of alternate proposals for any third party.”

It also called on the board to reconsider “the offers made be Sports Direct to date and their own duties as directors of Debenhams”.

Debenhams declined to comment further on Sports Direct's latest statement.