Up to 50 Debenhams stores could disappear from the high street after the mega retailer rejected a £150 million rescue deal on Monday.

Sports Direct boss Mike Ashley offered to save the chain, which has faced serious financial difficulties since October 2018, but his rescue package was rejected by the board.

Ashley’s offer of help hung on him being made chief executive of the firm- a move Debenhams was not prepared to accept, The Guardian reports.

While Sports Direct may still make a £61m bid for Debenhams, it’s increasingly likely lenders will take control of the firm. 

Debenhams employs 25,000 people and has 165 stores.

If a rescue deal is not reached then lenders will close 50 Debenhams stores, which could happen with weeks.

In October 2018, Debenhams earmarked 50 stores for closure, if it remained loss-making.

The company has failed to move out of the red and now just under a third of its stores could shut up shop.

At the time Debenhams Chief Executive, Sergio Bucher said: “Today’s announcement represents the first step in our refinancing process.

“The support of our lenders for our turnaround plan is important to underpin a comprehensive solution that will take account of the interests of all stakeholders, and deliver a sustainable and profitable future for Debenhams.”

Mr Bucher told the BBC at the time that the stores were “contributing positively” to the business.

However, he added: “However, rolling forward current trends, we do not believe they will remain profitable in future years and therefore we intend to exit these stores over the next three to five years”.

The 2018 announcement came after the chain reported a tax loss of £491.5million.

Debenhams is yet to confirm which stores could close, but it would affect around 4,000 jobs.

These job losses would come on top of the around 320 jobs Debenhams has already axed.

More stores than just the original 50 may also be set to close if a rescue deal is not agreed.

Debenhams could still opt for Ashley’s pre-pack deal, a decision which may be announced on Tuesday morning.

If it opts for the rescue package then only Debenhams’ holding company would be affected, and the stores would continue to trade. 

Debenhams is one of the biggest retailers in the UK.

If the chain folds it will be the latest in a string of high-file British high street casualties

Debenhams has been contacted for comment.

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