Sports Direct is reported to have paid over the odds for shares in Debenhams as it is tied into an options contract agreed when the stock was trading at a higher level.
Debenhams shares have come under pressure recently, with the retailer having reported a 44% fall in annual profits only last week.
According to a report in the Financial Times, Sports Direct is committed to buying 10.5% of Debenhams’ shares in ten transactions during October and November of this year.
The price of the Debenhams shares was agreed in 2015 and has not been disclosed.
Sports Direct has previously estimated its exposure through the contract at £85m, equivalent to 65.9p per Debenhams share.
This is around 49% higher than Debenhams´ current share price.
Sports Direct, which is controlled by billionaire founder Mike Ashley, has also set up concessions inside Debenhams stores.