Debenhams Lenders Take Over in Snub to Billionaire Ashley

  • Move comes after Debenhams rejected offer from Sports Direct
  • With holding wiped out, Ashley seeks reversal of process
Photographer: Jason Alden/Bloomberg
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Debenhams Plc, the 241-year-old U.K. department-store chain that anchors many of the country’s troubled shopping streets, was taken over by lenders after rebuffing a last-minute offer from billionaire Mike Ashley.

The retailer entered a form of U.K. insolvency proceedings, handing creditors control and prompting the tycoon to call for the reversal of a process he describedBloomberg Terminal as a “national scandal.” Stores employing about 26,000 people will continue to operate as normal, but shareholders’ stakes are now worthless.