Sports Direct rules out bid for Debenhams

Sports Direct clarified overnight that it does not currently intend to bid for Debenhams, in which it has a 29% stake.

The FTSE 250 retailer was forced to issue the statement after outgoing senior independent director, Simon Bentley, had allegedly told journalists at the annual shareholder meeting that the Board had discussed the possibility of combining Debenhams with its newly acquired House of Fraser department store chain.

"Further to recent press speculation in relation to Debenhams plc, Sports Direct confirms that it does not intend to make an offer to acquire the entire issued and to be issued ordinary share capital of Debenhams plc," the Mike Ashley-owned company said in a statement on Wednesday evening.

As a result, the UK Takeover Code prevents Sports Direct from making a bid for Debenhams in the next six months.

Earlier in the day, the company said that trading was in line with the group’s wide guidance range a 5% to 15% improvement in underlying earnings for the current financial year, excluding the acquisition of House of Fraser.

The departure of chairman Keith Hellawell was also announced, amid growing shareholder pressure in recent years, while 60% owner and CEO Mike Ashley saw 10% of shareholders object to his re-election.