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Frasers Group may rescue UK chain Debenhams
British billionaire Mike Ashley could extend his reach on High Street. His company Frasers Group says it is in negotiations to buy the Debenhams department store chain. Frasers, formerly Sports Direct, said it hoped a rescue deal could be reached and jobs at Debenhams would be saved. But he cautioned that the transaction was complicated and that talks had to be done quickly. Former Debenhams shareholder, Ashley’s Frasers Group has long been linked to his rescue. Debenhams managers said last week that it would close all of its stores after 242 years in business. The chain employs about 12,000 people. Last week’s announcement came after Arcadia Group, which owns Topshop, collapsed in administration. Arcadia is the largest concession operator in Debenhams, and its collapse appears to have been the last straw. Frasers said in a statement on Monday (December 7) that the Arcadia collapse was a complicating factor in any potential rescue deal for Debenhams. Ashley, a former squash coach who owns 64% of the Frasers Group and Newcastle Football Club, has spent the last few years buying up much of the UK’s main street. The latest events came when there was even more bad news for British stores. Fashion retailer Ted Baker cut 953 jobs on Monday (Dec. 7) as lockdowns increased first-half losses. The brand said its pre-tax loss widened to more than $ 51 million in the six months through Aug. 8. He also warned of more pain over a no-deal Brexit as the European Union’s divorce deadline approaches. The flow of goods through UK ports is under threat unless a new trade deal can be agreed.
