Mike Ashley's Frasers Group exits Debenhams race


Mike Ashley's Frasers Group exits Debenhams race

Mike Ashley’s Frasers Group is reportedly out of the race to acquire
Debenhams ater failing to match a 300 million pound price tag demanded by
the UK department stores group’s advisers.

According to The Times, those advisers must now choose whether they want
to liquidate the 232-year-old business, break it up and sell it to
different buyers, or sell it back to the group of hedge funds that own its
debts.

It comes after Debenhams fell into ‘light touch’ administration back in
April – a process being handled by restructuring firm FRP Advisory.

Frasers Group’s chief financial officer Chris Wootton has written to the
chair of the Business, Energy and Industrial Strategy Committee committee,
saying that the price tag for Debenhams was “impossible” for all but
insiders to reach, The Times reports.

Wootton added that this means Debenhams will be bought by its present
owners or restructuring specialist Hilco, which would “look to turn the
remnants of Debenhams into cash before leaving a bare carcass stripped to
the bone”.

Photo credit: Debenhams



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