Department store Debenhams has been placed into administration and the retailer's lenders have seized control of the company.

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 (April 8).

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."

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% stake, will see their investments wiped out.

Terry Duddy, Debenhams chairman, said: "It is disappointing to reach a conclusion that will result in no value for our equity holders.

"However, this transaction will allow Debenhams to continue trading as normal; access the funding we need; and proceed with executing our turnaround plans whilst deleveraging the group's balance sheet.

"We remain focused on protecting as many stores and jobs as possible, consistent with establishing a sustainable store portfolio in line with our previous guidance.

"In the meantime, our customers, colleagues, pension holders, suppliers and landlords can be reassured that Debenhams will now be able to move forward on a stable footing. I would like to thank them all for their recent and continuing support."