Debenhams has rejected a new £200m offer from Sports Direct, made in the early hours of Tuesday, to pump money into the troubled department store.
On Monday, Debenhams turned down a similar proposal from Mike Ashley’s company to put £150m into the retailer.
And on Tuesday, Debenhams’ board said that its lenders felt the new proposal was not enough to justify an extension to the 8 April refinancing deadline.
Debenhams could go into administration later on Tuesday.
- Debenhams rejects Mike Ashley’s last-ditch rescue plan
- Debenhams secures £200m lifeline with lenders
The new offer from Sports Direct would have seen the company underwrite the raising of £200m by issuing new shares, higher than its previous proposal.
Debenhams is expected to go through a pre-pack administration, which would mean current shareholders – including Mr Ashley who owns nearly 30% of the chain – would be wiped out.
While the shops would continue trading for now, Debenhams has proposed closing around 50 branches from next year and renegotiating rents with landlords to tackle its funding problems.