Mike Ashley’s Frasers Group has pulled out of the auction for ailing British fashion retailer Debenhams.
Reportedly, the Group failed to match the £300 million price tag demanded by the advisers of the struggling fashion retailer.
It was only last month that the Frasers Group had bid £125 million for Debenhams.
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Group CEO Chris Wootton wrote to the chair of Business, Energy and Industrial Strategy Committee and said that the price tag set by Debenhams wasn’t possible for anyone to meet.
The exit of Frasers Group from the auction race has now left Debenhams with the option of either liquidating the over 200-year-old business or selling it back to the hedge funds that own its debts.
Meanwhile, restructuring firm Hilco has been put on standby as liquidator if the retailer fails to seek any buyer.
There have also been reports that British fashion retailer Next has also shown interest in buying some stores of Debenhams, but there is no official confirmation on the same.
