Sportswear retailer JD is reportedly in "exclusive" talks with Debenhams over a deal to rescue the beleaguered department store chain from administration, potentially saving thousands of jobs in the run-up to Christmas.
According to a report in The Times , JD Sports is in discussions to buy up the whole of the 232-year-old business which includes 12,000 staff and 124 shops.
It is understood that JD is engaging with Debenhams' administrators FRP and its advisers, Lazard. However, sources in The Times said the talks could still falter.
The news comes just a few weeks after billionaire retail tycoon Mike Ashley was priced out of a deal to buy the department store chain. Mr Ashley reportedly failed to match the £300million Debenhams' advisers were asking for.
If Debenhams is unable to find a buyer, the historic retailer could fall into liquidation. It is among a long list of well-known retailers to appoint administrators in 2020.
In April, the department store collapsed into administration for the second time in 12 months. The chain appointed Lazard in the summer to help it explore options for its future, including a search for a new owner.
Even before the Covid-19 pandemic hit the UK, Debenhams was dealing with hundreds of millions of pounds of debt.
When the chain fell into administration last year it wiped out its shareholders, including Mr Ashley, and transferred ownership to a group of financial investors.
Other retailers reportedly interested in parts of Debenhams include Next and M&S, while it is understood online retailer The Hut Group has reportedly made an offer to buy Debenhams’ website.
Debenhams said it would not comment on the reports. BusinessLive has contacted JD Sports for comment.
