Debenhams could merge with House of Fraser as Sports Direct board member admits firm has considered it
Sports Direct owns just under 30 per cent of Debenhams, close to the threshold at which it must launch an official takeover bid
SPORTS DIRECT board members have discussed a possible merger between Debenhams and House of Fraser, a company director has revealed.
House of Fraser was saved by billionaire businessman Mike Ashley after Sports Direct bought the chain for £90million cash last month.
Sports Direct owns just under 30 per cent of Debenhams, close to the threshold at which it must launch an official takeover bid.
Analysts have previously suggested the two department stores should combine to cut costs.
Outgoing senior non-executive director Simon Bentley said at the Sports Direct general meeting that a combination had "been discussed".
He added that the company still has its "hands full" with integrating House of Fraser.
Mr Bentley said: "I was asked a general question about whether or not we discuss our strategic investments, and in particular Debenhams, to which I replied in the positive.
"I made no mention of any merger between House of Fraser and Debenhams, nor did I intend my answer to infer that."
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Earlier this week, Debenhams called in advisers to help save the chain from closure.
The embattled department store chain is fighting to keep its 240 stores open following a sharp fall in profits and tumbling share prices as consumers turn to online shopping.
After issuing three profit warnings this year, the chain had already announced plans to cut up to 90 jobs at its headquarters and 320 store management jobs.
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