Frasers Group has confirmed it is in negotiations for a potential rescue transaction of Debenhams.

Last week the department store announced that it had no choice but to go into liquidation after a last-minute rescue deal with JD Sports collapsed.

In a statement Frasers Group, which is owned by Mike Ashley, said that although it hopes a rescue package can be put in place, time is short and the position is further complicated by the recent administration of the Arcadia Group, Debenhams' biggest concession holder.

The retail group, which trades under the wider Sports Direct brand, said that there is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly.

If the Frasers Group deal does not go through, 12,000 jobs will be at risk.

Ashley has also offered Arcadia an emergency loan of £50 million and last week expressed interest in buying parts of the retail empire if it goes into administration.

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