Finance Monthly May 2019 Edition

AsDebenhamsbecomes the latest casualtyof the failing British high-street, Neil Clothier, Head of Negotiations at global sales and negotiation skills development company, Huthwaite International, which over the past 30 years has trained senior negotiation professionals across the globe, examines how businessman Mike Ashley has approached the situation. Has his aggressive approach irreparably damaged his chance of a successful takeover, or does it show his passion for the brand and its stakeholders? Ashley’s negotiation techniques With the announcement of Debenhams’ struggle to turn a profit and pay back any proportion of its mounting debt, Mike Ashley – on paper at least – should have been a favourite to take over the running of the department store chain, rescuing it from the brink of collapse. However, unfortunately for Mr Ashley and his now worthless assets, the Debenhams lenders have taken a different tact. For Mike Ashley, it could be that his reputation preceded him, and ultimately thwarted his efforts. In business, as in life, a reputation for a heavy-handed approach, a penchant for taking risks, and a very narrow approach to negotiation can leave our peers feeling wary. Over the past few years, we have seen Ashley adopt a particularly aggressive approach to his negotiations time and time again, with a ‘my way or the highway’ attitude. This technique is well known throughout the world of business, and indeed politics, often referred to as the ‘mad man’ technique, an approach used by some of the most powerful people in the world WHY WOULD DEBENHAMS RATHER GO INTO ADMINISTRATION THAN BE TAKEN OVER BY MIKE ASHLEY? Neil Clothier, Head of Negotiations at Huthwaite International AND IS THERE ANYTHING HE CAN DO TO CHANGE THAT? 50 www.finance-monthly.com ASK THE EXPERT - DEBENHAMS COLLAPSE