UK: Sports Direct takes 4.6% stake in Debenhams
The acquisition has taken place without the prior knowledge of the Debenhams board of directors
In a stock exchange filing this morning (13 January), the sporting goods retailer, which operates 400 stores across the UK, said it has purchased 56.8m shares in the group.
The company said it wants to "explore options" at an operational level to work with Debenhams to "create value in the interests of both Sports Direct's and Debenhams' shareholders".
"This acquisition of shares has taken place without the prior knowledge of the Debenhams board of directors, but Sports Direct has communicated to Debenhams' board its desire to work together and its intention to be a supportive shareholder," Sports Direct said.
Debenhams share price was up 4.11% to 84.90 pence at 10:41 this morning on the news.
The company saw its CFO Simon Herrick resign earlier this month, just days after the department store retailer issued a post-Christmas profit warning amid weak clothing sales.
Cantor analyst Freddie George said the acquisition would imply Sports Direct is potentially considering splitting the fashion assortment from the sports ranges in its stores over the medium term.
"Sports Direct has looked very closely at acquiring House of Fraser over the last year and has in the past been active in buying stakes in other retail companies, not always with great success, including JD Sports, JJB and Blacks, so in our view one should not read too much into this new investment," he noted.
More than 220 companies have now signed the Accord on Fire and Building Safety in Bangladesh following the collapse of the Rana Plaza factory building in Dhaka, which killed more than 1,100 people in ...
This report is a crucial resource for industry executives and anyone looking to access key information about "JD Sports Fashion Plc". The report utilizes a wide range of primary and secondary sources,...
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories: acquisitions, divestments and mergers; corpora...
UK retailer Sports Direct International has remained tight lipped over reports it is planning to close up to a third of its loss-making USC fashion stores....
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories: acquisitions, divestments and mergers; company...
Our new Amazon Annual Best seller reports are available on a consultancy basis and deeply mine our own Amazon Trackers research and employ some unique in house modeling techniques. Harnessing insights...
- Sustainable fibres, finishes and processes at ITMA
- Freeing up working capital in the supply chain
- Five ways to tackle market and demand volatility
- ‘Fixing Fashion’ one stitch at a time
- Why China 5-year plan won't change garment-making
- Uniqlo under fire again for China worker abuses
- German sustainable textile scheme heads to Vietnam
- 3D tool uses product data to shake up shopping
- Fast Retailing in deal for laser treated garments
- US Q3 in brief: Shoe Carnival, Caleres
- Wearable technology: The future market potential for smart garments and e-textiles
- Practical Brand Sourcing Strategy
- Statistics: Trends in Global and Regional Man-made Fibre Production - 2015
- Trade and Trade Policy: The World’s Leading Clothing Exporters and Key Markets 2015
- Myanmar's Garment Sector in 2015 - now with updated members' directory