Are Sports Direct going to put shell suits in Debenhams?
Mike Ashley’s Sports Direct bought itself a £45 million stake in Debenhams and, in what almost seems like a threat, Ashley has told the struggling retailer that he will be working with them very closely.
You can only hope that means Debenhams will soon be selling trackie bottoms and 4 pint tea mugs before the year is out.
Debenhams have said that they're 'open-minded' about working with Sports Direct and Ashley, but seeing as shares have been lousy, only jumping since Ashley's stake, they might have to do as they're told.
Ashley of course, tried to get on board with House of Fraser last year, but pulled out after the two camps couldn't agree on terms. Seeing as Debenhams have signed-up to Ashley's thinking, there's speculation that he might be planning a takeover. Ashley also invested in Adidas and sold the stake for a profit, so maybe that's what he's up to with Debenhams?
It'll be interesting to see how this pans out as Sports Direct and Debenhams couldn't be more different. Who will benefit from who?