Debenhams is on the brink of administration after the company rejected a £150 million tabled by Sports Direct boss Mike Ashley.

 Mr Ashley, who holds a 30 per cent stake in Debenhams offered the deal to the struggling department store chain over the weekend, giving them until 5pm today to respond.

The deal would have also seen Mr Ashley appointed as Debenhams CEO.

In a statement issued by Sports Direct this afternoon, they confirmed that Debenhams had rejected the proposals.

The statement read:  "Sports Direct had sought to constructively engage with the Debenhams board, including over the weekend, in order to put together a proposal for a solvent solution for Debenhams in the form of a £150 million pre-emptive equity issuance to existing Debenhams shareholders ("Equity Issuance").

"Sports Direct believes that the Equity Issuance, which would have formed part of a comprehensive refinancing of Debenhams, should have been deliverable with the co-operation of Debenhams and its existing lenders.

"As such, Sports Direct is disappointed with Debenhams' response.

"Sports Direct believes that, in the continued absence of any such engagement from the board of Debenhams and Debenhams' lenders, there is a likely significant and negative impact on Debenhams' current shareholders and other stakeholders, including suppliers and employees. "

An alternative to the rejected deal is pre-pack administration which would wipe out shareholders, including Sports Direct.

Debenhams could also extend today's deadline in order to continue talks with Sports Direct.

Last year, Debenhams announced that it will close 50 stores over the next three to five years, affecting around 4,000 jobs as part of a major rescue plan.

Debenhams is yet to announce whether the Altrincham and Trafford Centre stores are among those earmarked for closure.

A source also said that no stores will be closed before Christmas, 2019.