JD Sports has emerged as a prospective bidder for the Debenhams and is understood to be running due diligence on the business.

The sports fashion retailer is understood to have been given access to the data room holding Debenhams’ financial information, indicating a serious level of interest in a prospective bid for the business.

It is unclear what parts of Debenhams, which fell into administration in April, have attracted JD Sports’ interest.

It is understood that if the ailing department store firm fails to secure a buyer it faces liquidation, selling off respective divisions to buyers or being sold back to the hedge funds that own its debts.

The interest from JD Sports in Debenhams, first reported by The Sunday Telegraph, follows its rival Sports Direct reportedly withdrawing from the race to snap up the firm earlier this month after refusing to match the £300m price tag set by Debenhams’ advisers.

JD Sports’ interest in Debenhams comes at the same time as its deal to acquire Footasylum being back on the cards after an attempt by the Competition and Markets Authority to block it was overturned.