LONDON (Reuters) – British department store group Debenhams said on Thursday it would give “careful consideration” to a proposal from its biggest shareholder Sports Direct to provide a 150 million pounds unsecured loan.
The one year loan, offered by Sports Direct on Wednesday, is subject to conditions, including installing its boss Mike Ashley as Debenhams’ chief executive.
Debenhams said any third party loan offer on the terms offered would require both the consent of its existing lenders and bondholders as well as “material amendments” to existing facilities.
“Nevertheless, the board will give careful consideration to the proposal and will engage with Sports Direct and other stakeholders regarding its feasibility in the interests of all parties,” it said.
(Reporting by James Davey; Editing by Mark Potter)