// Debenhams bidders given until middle of this week to make a £300m rescue bid
// Advisers are weighing up alternative options for the business
Debenhams bidders have reportedly been given until the middle of this week to make a £300 million rescue bid for the department store chain.
Debenhams’ future remains uncertain as prospective buyers, such as Mike Ashley’s Frasers Group, have been told to make a binding commitment by the close of business on Wednesday, or exit, The Sunday Times reported.
Meanwhile, advisers are weighing up alternative options for the business, which could liquidate the company or offload parts of the business to the group of hedge funds that owns its debts, led by Silver Point Capital.
- Mike Ashley puts in new bid for Debenhams
- India’s retail tycoon Mukesh Ambani pulls out of race to buy Debenhams
Debenhams went into administration again in April to prevent winding- up orders from creditors.
In April 2019, the department store chain fell into the hands of hedge funds and banks, after struggling for years to stay afloat.
At the time, Frasers Group lost £150 million on the debt-for-equity swap.
Earlier this month, India’s richest man Mukesh Ambani dropped out of the race to buy Debenhams.
Ambani’s Reliance Retail emerged last month as a possible suitor to make a bid on Debenhams.
At the time, Ambani was one of a small number of interested parties in discussions with advisors to acquire all or part of the embattled department store chain.
Nevertheless, Frasers Group is understood to have made an offer of about £125 million.
Ashley’s empire is also thought to be interested in stores that can be converted into Flannels or Sports Direct shops.
The department store chain also began the sales process of its Danish retail business Magasin du Nord earlier in September in a bid to generate between £150 million and £200 million.
Debenhams has 124 stores in the UK and 12,000 workers.