Debenhams is set to wind down the business and close all 124 stores after JD Sports ended discussions over a rescue deal, says Sarah Butler in The Guardian. While Debenhams’ administrators have been seeking a buyer since the summer, they now admit that the sale process has “not resulted in a deliverable proposal”, blaming the “extremely challenging” economic landscape and the pandemic-related “uncertainty” facing the UK retail industry.
No wonder JD Sports pulled out, says Jonathan Eley in the Financial Times. The market reacted “badly” to the news that the successful retailer was planning a bid for Debenhams, with the stock sliding by 10%. The collapse of Arcadia, a leading concession in Debenhams’ stores, is “unlikely to have helped sentiment”. JD’s departure means that Mike Ashley, the founder of JD’s rival Sports Direct, is expected to be a “prominent bidder” for any stores or parcels of stores that become available as part of the process.
Ashley is positioning himself as the “only saviour of either Arcadia or Debenhams”, says Ben Marlow in The Daily Telegraph. But while his “long courtship” of Debenhams has already cost Sports Direct shareholders £150m thanks to a failed investment in the company, he is not assured of success. His “highly provocative offer” to bail Arcadia out with a £50m loan is likely to ensure that Arcadia chair Philip Green works hard to block him. Although Arcadia’s various brands are technically in the hands of administrators, UK retail is a “small world” and Green “still knows all the big-hitters”.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
Ofgem proposes new energy tariffs with low or no standing changesStanding charges have invited public backlash as households battle high energy bills
-
Google shares bounce on Gemini 2.0 launchGoogle has launched the latest version of its Gemini AI platform, and markets have responded positively. Is it time to buy Google shares?
-
India's stock market drops - why it's thrown investors into frenzyNifty 50, India's stock market index, has dropped 8% from a September record amid concerns of an economic slowdown and foreign investors pulling out
-
Warren Buffet invests in Domino’s – should you buy?What makes Domino's a compelling investment for Warren Buffet's Berkshire Hathaway, and should you buy the UK-listed takeaway pizza chain?
-
UK equities are set for a bull market – buy nowInvestors shouldn’t wait for a crisis to buy UK equities, says Max King. Do so now, in the expectation of much better returns in due course
-
How to find top-quality income picks in the UK stock marketFour top-quality UK stock market picks according to Iain Pyle, manager of Shires Income Trust
-
4Imprint makes a strong impression – should you buy?4Imprint, a specialist in marketing promotional products, is the leader in a fragmented field
-
Invest in Glencore: a cheap play on global growthGlencore looks historically cheap, yet the group’s prospects remain encouraging
-
How to save the dying UK stock marketThe UK stock market is in long-term decline. To fix that, we must first recognise why equity markets exist and who they should serve
-
Bargain British stocks with long-term potentialThree British stocks with plenty of long-term potential, according to Ian Lance, co-manager of Temple Bar Investment Trust
