It can’t be too often that small suppliers find themselves in agreement with notoriously hard-nosed retail tycoon Mike Ashley, owner of the Sports Direct Group. But on the subject of troubled department store Debenhams’ recovery options, there may be some common ground.
In the past week, Debenhams has secured a £200m refinancing package to help it restructure its debts, cut operating costs and rationalise its store holdings. Mike Ashley and Sports Direct, Debenhams’ biggest shareholder, are vehemently opposed to the plan, even going so far as to write to shareholders alleging misconduct from directors in a bid to get them to block the plans.
Another week, another tale of company administration, job losses and suppliers facing an anxious wait on whether they’ll ever get anything back on unpaid invoices.
The collapse of Flybmi, the small regional airline based at East Midlands Airport, has resulted in the ‘majority’ of the company’s 376 staff being laid off with immediate effect. Following Monarch last year, it is the second UK airline to go under in less than 12 months.
Retail tycoon Mike Ashley has been quick to position himself as champion of the high street after buying House of Fraser out of administration. But whether suppliers, pension holders and even landlords will be celebrating the takeover is questionable.
The Sports Direct owner snapped up the struggling department chain for £90m just an hour after entered administration last week, vowing to keep open at least 80% of its UK stores open.