Sports Direct owner Mike Ashley said in a stock market update, he proposes to remove the whole of the Debenhams board.
Ashley said he wants a meeting to remove “all of the current members of the Debenhams board” but, to keep finance chief executive, Rachel Osborne.
Ashely is proposing to install himself as an executive to the retailer and he will step down from his current positions.
He is proposing to step down as chief executive of Sports Direct, and Chris Wootton, deputy finance boss to replace Ashley in an acting capacity.
The statement read, “If Mr Ashley were to be appointed to the board of directors of Debenhams during this business-critical period for Debenhams, Mr Ashley would carry out an executive role and would focus on the Debenhams business, including building a strong board and management team.”
This shock announcement comes days after the troubled retailer issued another profit warning.
Tuesday the troubled retailer announced their shares have tumbled, as the retailer warned over profits due to sales coming under constant pressure.
Debenhams said their January statement for profits, is “no longer valid” due to market expectations.
Strong trading headwinds has place Debenhams financial footing on a slippery slope, macroeconomics uncertainty has hit the company hard, and share were down 12% at 2.8p in early morning trading on Tuesday.
Ashley reassured Sports Direct investors and said he has “every confidence” that Wootton and members of the board and management team have the expertise to run the business successfully.