Troubled retailer Debenhams is on the brink of administration after Mike Ashley’s £200m offer was rejected.
Shares in the company were suspended on Tuesday morning, Debenhams “anticipates making a further announcement during the course of the day.”
Lenders has now seized control and it is expected to trigger store closures with job losses.
Mike Ashley will lose his 30% stake in the retailer and investors will see their investments wiped out.
In a statement early on Tuesday morning Debenhams said, “The board confirms that it received a revised, highly-conditional, proposal from Sports Direct in the early hours of 9 April, which indicated a willingness of Sports Direct to underwrite an equity issue of £200 million.
“The company’s lenders have confirmed to the company that the proposal, on the terms set out, was not sufficient to justify an extension to the 8 April deadline.
“The company anticipates making a further announcement during the course of the day following further discussions with its lenders.”