Sports Direct, the British sportswear firm controlled by Mike Ashley, said its possible offer for Debenhams values the ailing department store group at £61.4m.

The terms of the possible offer would be 5 pence a share in cash, Sports Direct said.

It also said it would assist Debenhams in addressing its immediate funding requirements. 

Sports Direct said its proposal is also conditional upon Debenhams immediately appointing Ashley as its chief executive and terminating the noteholder consent solicitation process it announced last week.