Sports Direct has bought 56.8 million shares of department store group Debenhams, equal to 4.6% of the company. Debenhams, which has 240 stores in 28 countries, saw “extremely difficult” Christmas trading and has warned that profits for the half year will be below expectations.

In a statement, Debenhams said: “Debenhams notes that Sports Direct intends to be a supportive shareholder and that it wishes to explore options at an operational level to work together. Debenhams is open minded with regard to exploring operational opportunities to improve its performance, alongside its own existing and planned initiatives, in order to create value for all Debenhams shareholders.”