Sports Direct holds back from Debenhams bid

Rather than emerge with a full takeover bid, Sports Direct has prepared a template letter for other shareholders in Debenhams to use as part of boss Mike Ashley's push to install himself as chief executive of the troubled department store group.

At the end of last week Debenhams secured £200m of cash from its lenders but said it remained open to Sports Direct either following up its possible 5p offer with a firm bid, or underwriting a rights issue or a loan.

If neither of those options emerge, Debenhams said it would continue to pursue a restructuring, having warned that this could potentially result in the value of its share being wiped out.

Sports Direct said on Monday that it had been contacted by "a number" of other concerned shareholders in Debenhams, concerned they will see the value of their shares wiped out by Debenhams financial restructuring plans and "expressing their support" for Ashley's appointment as CEO there.

The company said it was therefore making available a template letter on its website "should any shareholder in Debenhams want to use it to make their views known directly to Debenhams".