Mike Ashley picks over Debenhams’ carcass
Mike Ashley’s Frasers Group is attempting a “last-minute rescue” of Debenhams.
Mike Ashley’s (pictured) Frasers Group is attempting a “last-minute rescue” of Debenhams, the “stricken” UK department store chain, says Nic Fildes in the Financial Times. The talks between Frasers and the Debenhams’ liquidators are taking place “in good faith” despite Ashley’s “public war of words” with Sir Philip Green, whose Arcadia Group, which has also collapsed, owns a large number of concessions in Debenhams stores.
Having lost £150m through his doomed equity investment in Debenhams, Mike Ashley “was bound to show up at the administrator’s door at the 11th hour to take another look”, says Nils Pratley in The Guardian. While Ashley won’t be “remotely interested” in owning all 124 Debenhams stores permanently, he may be able to find at least 40 or 50 “in decent locations”. While this means that many stores will still be closed, from the point of view of saving jobs, “any interest is better than none”.
If Ashley wants to own even a piece of the Debenhams empire he’ll have to move fast, says Joel Hills on ITV. He hopes that the fact that Debenhams is in administration means that he can “cherry-pick the assets”. However, Debenhams’ creditors, led by hedge fund Silver Point Capital, who effectively now determine the fate of the chain, may have other ideas. Indeed, they may decide that “they can raise more money by liquidating the stock and selling off the store leases”, even if this leads to all 12,000 workers losing their jobs. In any case, a deal will have to be done soon, as the closing-down sales “are already in full swing”.
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Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.
He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.
Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.
As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.
Follow Matthew on Twitter: @DrMatthewPartri
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