ScS ends talks over Sofa.com, clears way for Mike Ashley

Just days after confirming that it was in talks about the possible acquisition of Sofa.com, ScS said on Friday that the discussions had ended, clearing the way for Mike Ashley.

The retailer did not provide any reasons, but earlier this week it was reported that Sports Direct founder Mike Ashley - who owns House of Fraser and has a near-30% stake in Debenhams - had sanctioned a multi-million pound offer for Sofa.com.

On Friday, Sky said Ashley has agreed a "cut-price" takeover of Sofa.com after seeing off interest from ScS. It was understood that Ashley had struck a deal late on Thursday to buy the sofa retailer for "a nominal sum".

Ashley was said to be keen on the takeover because of ScS's concessions in a number of House of Fraser stores.

Sofa.com put itself up for sale at the end of last year. The company’s owner, LGT European Capital, has hired business services firm KPMG to handle the sale.