Frasers shares jump on Debenhams deal hopes

Shares in Frasers Group jumped on Monday, following weekend reports that a Debenhams deal could be imminent.

According to the The Mail on Sunday, Mike Ashley’s Frasers - which owns House of Fraser and Sports Direct, among other brands - spent the weekend locked in talks to buy Debenhams’ online business, along with around 30 or 40 of the 124-store estate.

The Mail on Sunday said other bidders had been locked out of talks, and that there were hopes that a deal could be secured as early as Monday.

A number of other retailers are reported to have shown an interest in both Debenhams and Sir Philip Green’s Arcadia Group, which called in the administrators earlier this month. Arcadia’s brands include Topshop, Burton and Dorothy Perkins.

UK businesses linked with Arcadia included Marks & Spencer, Next, Boohoo and Associated British Foods, the owner of Primark.

American fashion and investment firm Authentic Brands, owner of Juicy Couture, is also thought to be interested in both Arcadia and Debenhams, The Sunday Telegraph reported.

However, an analyst told The Times that many companies were registering interest as an opportunity to look at a rival’s books. "The real action will be when the first round bids are in," an unnamed analyst told the newspaper.

As at 1315 GMT, shares in Frasers Group were ahead 6% at 457.6p.