Shares of JD Sports Fashion PLC (LON: JD.) soared over 7% today after reports emerged that the company is pulling out of talks with Debenhams administrators.
The exclusivity period for JD Sports to strike a deal ended without an agreement to save the embattled business. Yahoo! Finance reports that JD Sports is still interested in reaching a deal and it has not withdrawn completely from the process.
Apart from JD Sports, Mike Ashley’s Frasers Group may make another bid to save Debenhams after fresh reports that the owner of Newcastle United football club provided draft terms for a loan of up to £50 million in “emergency funding” to Sir Philip Green’s Arcadia Group, which is Debenhams’ biggest concession holder.
“Should the company and the Arcadia Group’s efforts to agree an emergency funding package fail and the Arcadia Group enter into administration, the company would be interested in participating in any sale process,” Frasers said in the statement.
Arcadia is reportedly on the brink of administration after failing to secure £30 million in funding.
JD Sports share price gained over 7% to trade at 792.6p.
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