The owners of struggling British fashion retailer Debenhams are set to put their Danish business – Magasin du Nord – for sale.
If media reports are anything to go by, the sale of Magasin du Nord is estimated to generate anything between £150 million and £200 million.
The proceeds from the sale, which is still in its initial stages, are likely to go to Celine Group Holdings, which is a consortium of hedge funds owning the fashion retailer instead to being used for the retailer’s core business.
Here it is important to note that that Debenhams’ 7 stores in Denmark have been doing better-than-expected trading lately.
Meanwhile, Frasers Group has shown keen interest in buying Magasin du Nord, whose auction is being currently handled by financial advisory firm Lazard as well as Freshfields Bruckhaus Deringer – a multi-national law firm.
Only last week, Frasers Group had accused Debenhams advisers of preventing it from any sale process.
Also Read: Frasers Group accuses Debenhams’ advisers of blocking it from sale process
Lazard had recently asked interested buyers to submit their offers and though much didn’t come out of it, experts believe it was just a checkpoint to know if there was any interest in buying Debenhams.
The retailer, reportedly, is planning to enter into a deal by the end of this month before exploring other possible options.
However, Mark Gifford, Chairman, Debenhams, said that Debenhams was in no rush to finalise the deal in September and will in all likelihood remain in administration until early 2021.
Also Read: Now Debenhams owner is on the verge of bankruptcy!
