Mike Ashleys Frasers Group has confirmed it is working on a possible last minute rescue of Debenhams.

The department store chain is currently set to shut all its stores by the end of next March, putting 12,000 jobs at risk, after administrators failed to find a buyer for the business.

Mr Ashley has bought other struggling High Street businesses and used to be a major shareholder in Debenhams.

But Frasers said there was "no certainty" it could save the chain.

One of the biggest issues, it said, was the collapse into administration last week of another High Street giant, Arcadia, which is the biggest concession holder in Debenhams department stores.

Liquidators moved in to Debenhams' stores on Wednesday to start clearing stock after a potential rescue deal with JD Sports fell through. 

Mike Ashley, who founded Sports Direct and also owns House of Fraser, had already made an offer for Debenhams after it was initially put up for sale in April.

But this approach, thought to be in the region of £125m, was rejected as too low, leaving JD Sports as the last remaining bidder. 

It is understood Mr Ashley was only interested in taking on about 30 stores out of 124.

In a statement issued on Monday, Frasers Group said that while it "hopes that a rescue package can be put in place and jobs saved, time is short and the position is further complicated by the recent administration of the Arcadia Group".

"There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly."

Mr Ashley has made no secret of his desire to acquire Debenhams in the past.

He built up a 29% stake in the chain, but saw his £150m holding wiped out last year when the company fell into administration and then ended up in the hands of its lenders, a consortium led by hedge fund Silverpoint.