Debenhams has been placed into administration

www.moneybright.co.uk

Department store chain Debenhams has fallen into administration today following a rejected £200million offer to save it by Sports Direct owner Mike Ashley.

At its own request, the company had its shares suspended before trading, however shops will continue to trade under the control of its lenders.

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The move, which was originally tipped to trigger store closures and job losses, saw Mr Ashley's £200m rescue plan rejected because he wanted to become chief executive of the retail giant.

Mr Ashley currently holds a 30 per cent stake in the company but will now see his investment wiped out - along with the investments of other shareholders.

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Since the news broke, Debenhams has insisted that stores will continue to trade normally under the appointment of FTI Consulting, who are carrying out the administration process.

The locations of possible store closures are yet to be revealed, but the department store has branches all over the UK, including the popular location at the head of Manchester's Market Street.

Debenhams has 165 stores and employs about 25,000 people. More as it comes.

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