Sports Direct moves in on Debenhams

Sports Direct, Britain’s largest sporting goods retailer, has acquired a 4.6 per cent stake in Debenhams, and said it wants to explore options “at an operational level” to work with the country’s number two department store.

“This acquisition of shares has taken place without the prior knowledge of the

Debenhams board of directors, but Sports Direct has communicated to Debenhams’ board its desire to work together and its intention to be a supportive shareholder,” Sports Direct said this morning.

Debenhams, which issued a profit warning last month after discounting aggressively over Christmas, noted Sports Direct’s purchase of shares and said it is “open minded” about working with the firm to improve its performance.

Debenhams, which acquired Roches Stores in 2006, has 11 stores across Ireland, and reported profits of €9.5 million on sales of €162.5 million in the year to September 1st 2012, according to Top1000.ie

(Additional reporting Reuters)