The fallout from Debenhams entering administration looks set to continue as Sports Direct International releases a scathing statement aimed squarely at the Debenhams board.
In an announcement on London’s Stock Exchange this morning, Sports Direct International PC revealed a share buyback programme with the purpose to reduce the share capital of the Company.
The timing of this mornings announcement raised a few eyebrows in the city as it followed on from yesterday’s news of Debenhams entering administration and Mike Ashley losing a reported £150m from the collapse of his 29% share in the company.
However, there was little room for doubt as to the reasons behind this move, following Sports Direct’s follow up announcement moments ago that directly referenced the failing Debenhams store.
We have included the full statement below:
Further to this morning’s announcement of a new share buyback programme, the board of Sports Direct believes our share buybacks are an important mechanism for maintaining an efficient but robust balance sheet for the benefit of our shareholders, whose support, including during the Debenhams refinancing process, we continue to appreciate.
Our understanding of the importance of our shareholders and our actions towards them are in complete contrast to the actions of the board of Debenhams, past and present, whereby they ignored the wishes of shareholders, both major and minor, and offers of support, and completely destroyed shareholder value.