Chief executive at Debenhams, Micheal Sharp had previously stated that due to the “extremely difficult environment” an negative impact had been made on “sales and profitability”, adding that he expects conditions to remain highly competitive in 2014.
Debenhams 'open minded' to working with Sports Direct
Debenhams has been striving to stay ahead of competitors, however weak online sales and the recent loss of its chief financial officer Simon Herrick have hit the group hard. The department store group had previously noticed Sports Direct stock and store purchases from former rival JJB Sports and state that it was “open minded” to working with the sporting goods retailer to help turn around sales.
In a press statement released today, Sports Direct also revealed that the “acquisition of shares [had] taken place without the prior knowledge of the Debenhams board of directors, but Sports Direct [had] communicated to Debenhams' board its desire to work together and its intention to be a supportive shareholder”.
Analysts have noted that Sports Direct is interested to open concession stands for a number of its fashion labels, such as Firetrap and Kangol and has been previously looking into acquiring a share in department store group House of Fraser.