It comes as Sports Direct Tycoon Mike Ashley made a revised last-ditch £200million rescue bid, upping the ante on an earlier £150million offer for the struggling clothing chain which was rejected yesterday.

Under the newest proposal, Debenhams’ lenders would have to agree to write off £82million of its £720millon debt mountain.

The company would also have to install Mr Ashley as chief executive.

Debenhams requested its shares be suspended with immediate effect pending a further update, reportedly expected this afternoon.

The company said in a statement this morning:  “The board confirms that it received a revised, highly-conditional, proposal from Sports Direct in the early hours of 9 April, which indicated a willingness of Sports Direct to underwrite an equity issue of £200 million.

“The company’s lenders have confirmed to the company that the proposal, on the terms set out, was not sufficient to justify an extension to the 8 April deadline.

“The company anticipates making a further announcement during the course of the day following further discussions with its lenders.”

Debenhams is now expected to fall into administration with the lenders poised to seize control in a move tipped to trigger store closures and job losses.

But shareholders including Sports Direct – which holds a 30% stake, will see their investments wiped out.

Mr Ashley yesterday demanded the Debenhams board take a lie detector test after accusing them of “falsehoods and denials”.

Around 50 stores are expected to close as part of a restructuring shake-up.

Just weeks earlier Debenhams issued a profit warning alert as sales nosedived.

Sports Direct said today that it is continuing to “actively evaluate” a conventional takeover, priced at 5p per share.

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