Debenhams has been placed in administration, with the retailer's lenders now in control of the company.

The move wipes out the stake held by Sports Direct tycoon Mike Ashley in the business, and those of all other shareholders.

Administrators at FTI Consulting were appointed to the retailer on Tuesday and immediately sold the group's operating companies to a new entity owned by its lenders.

It said its underlying business has access to £200m funding and that "Debenhams' operations continue to trade as normal" as the pre-pack administration arrangement emerged.

The firm, which has 14 stores in Scotland, earlier requested that its shares be suspended with immediate effect.

READ MORE: Debenhams shares suspended as chain prepares for administration

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."

READ MORE: Debenhams ‘is now preparing to go into pre-pack administration’

He said: "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."