Department store Debenhams saw its share price grow by five per cent on Monday (January 13th) after Sports Direct confirmed purchasing a stake in the company.
The retailer, owned by Newcastle United owner Mike Ashley, told the London Stock Exchange that it had bought a 4.6 per cent stake, around 56.8 million shares, in Debenhams.
In a statement to the stock exchange, the sports goods retailer said: "Sports Direct wishes to explore options at an operational level to work together with Debenhams to create value in the interests of both Sports Direct's and Debenhams' shareholders."
Debenhams has been going through some difficult times of late and issued a profit warning on December 31st 2013. It states that tax profits to April 2014 are expected to be down to £85 million, from £115 million in the same period 12 months ago.
It is not uncommon for Sports Direct to purchase stakes in competitors as Mr Ashley has previously bought an interest in both JJB Sports and Blacks Leisure.
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