Sports Direct owner, Mike Ashley, has called for Debenhams’ advisors to be ‘jailed’ after bondholders approved a restructuring which could wipe out shareholders.
The businessman said: “If there were any justice in the world the majority of the advisors would be put in prison.”
Mr Ashley is Debenhams’ largest shareholder with a 30% stake and is trying to take control of the full company with a reported £61 million bid. But the Debenhams board has been resistant to that idea, instead favouring an option to restructure and raised £200m from existing investors.
On Thursday, Debenhams’ bondholders voted to take it a step closer to restructuring existing terms to raise the £200m. Debenhams favours debt-for-equity swap or pre-pack administration options. Both could see the company’s shareholders lose their stake.