Mike Ashley's Sports Direct has made a revised £200 million rescue offer for Debenhams, delaying the department store's prospective administration.

The billionaire had an offer to underwrite a £150 million rights issue rejected on Monday.

The department store chain, which opened in the intu centre in September and has a branch in Borehamwood, has been resisting a takeover by Mr Ashley.

Lenders to Debenhams said the latest proposal, on the terms set out, including that Mr Ashley be made chief executive of the chain, was "not sufficient".

Debenhams said in a statement: "The board confirms that it received a revised, highly-conditional, proposal from Sports Direct in the early hours of April 9, 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 April 8 deadline.

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

Debenhams has requested that its shares be suspended from trading with immediate effect, pending a further update.

FTI Consulting has been appointed to carry out the process but the firm insisted that stores will continue to trade as normal.

Administrators have sold the group to a newly-incorporated company controlled by Debenhams' lenders, including hedge funds thought to include Alcentra, Angelo Gordon and Silver Point Capital.

Under new ownership, Debenhams will have access to £200 million in emergency funding.

The move is expected to trigger store closures and job losses as part of a wider restructuring that will see around 50 outlets shut via a Company Voluntary Arrangement.

The widely-anticipated change of ownership means that shareholders such as Mike Ashley's Sports Direct, who holds a 30 per cent stake, will see their investments wiped out.

Debenhams had on Tuesday rejected a separate rescue bid tabled by the billionaire tycoon.