Permira bid for Debenhams delayed

STORES group Debenhams is still thrashing out final details of the £1.5bn proposed bid from private equity firm Permira but warned today that 'there can be no certainty' that any offer will be made.

Sources close to the stores group said the bid has been agreed in principle but the two sides still have differences over terms and conditions of the offer.

It has also emerged that Debenhams has agreed to pay up to £6m of costs racked up by private equity groups CVC and Texas Pacific, which are considering a bid to rival Permira.

The unusual arrangement has angered some Debenhams shareholders but the stores group has said it is in the interests of shareholders to encourage an auction.

Fashion group Monsoon has seen its like-for-like sales surge by 11% in the seven weeks to 19 July and profits for the year to 31 May jump by 19% to £38.2m pre-tax.