Och-Ziff, the publicity-shy American hedge fund that backed Malcolm Glazer’s bid for Manchester United, emerged yesterday as the largest shareholder in Debenhams with an 11 per cent stake in the department store chain.

It bought 9 per cent from TPG, one of the three private equity groups that returned Debenhams to the stock market in 2006 saddled with debt.

Och-Ziff, identified as a likely buyer of the stake by The Times on Wednesday, also controls Peacocks, the discount fashion retailer with 500 stores, and holds a small stake in Premier Foods.

One analyst said that Och-Ziff’s purchase of shares in Premier and Debenhams, both of which have raised cash this year to reduce debts, suggested it had a strategic interest in newly capitalised British consumer stocks, implying that Debenhams was not a takeover target.

As Och-Ziff was becoming Debenhams’ largest shareholder, its finance director was offloading most of his stake in the company. Christopher Woodhouse sold nearly three-quarters of his holding in a transaction worth £7.2 million between October 22 and October 28. The deal leaves Mr Woodhouse with a 0.24 per cent stake in Debenhams.

A spokeswoman for the department store group told the market yesterday that the sale of the shares had been for personal reasons.

Shares in Debenhams closed up 0.5p at 80p, valuing the company at £1 billion.

Mr Woodhouse’s stake sale is the latest sign of Debenhams emerging from its private equity-dominated era.

Mr Woodhouse, along with Rob Templeman, chief executive, and John Lovering, chairman, were parachuted into Debenhams by CVC, the private equity group, in 2003. Mr Lovering announced his intention to stand down last week, while TPG, the last of the former private equity owners to retain a stake, sold out this week. CVC made its exit when Debenhams raised cash earlier this year. CVC and TPG’s board representatives also stepped down.

An analyst said: “There’s a feeling that Debenhams is moving on from the private equity days, which will be more pleasing to its institutional shareholders.”

Last week the company reported annual profits of £125 million, up 14 per cent.

In June, Debenhams raised £323 million from investors to pay down its debt, which it has reduced from £994 million to £590 million in the year to August 29. The company kept back about £100 million from the fundraising for “distressed” purchases.

Mr Templeman said last week that he would recommence Debenhams’ store refurbishment programme, which was mothballed last year amid plunging sales.

He is also overseeing a huge reconfiguration of Debenhams’ shop-floor space, by taking some from concessions and branded goods to sell more of the company’s own-label ranges, such as Designers at Debenhams.

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