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Published
Jul 9, 2019
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Debenhams calls for end to Sports Direct challenge, seeks to have it thrown out

Published
Jul 9, 2019

Debenhams is calling on Sports Direct to end its legal challenge to its company voluntary arrangement (CVA) following news that one of its landlords has come to agreement with the retailer and dropped its own court action. 


Debenhams



The retailer’s CVA was approved back in May but some creditors, including Sports Direct boss Mike Ashley and landlord M&G Real Estate, refused to let that be the end of the story.

But news on Monday that Debenhams and M&G have reached agreement has piled pressure onto Ashley.

Debenhams chairman Terry Duddy has now urged Sports Direct and the remaining unhappy landlord, Combined Property Control, to drop their separate lawsuit.

He said that if the suit isn't cancelled, “we will seek to have it thrown out. In the meantime we continue to make good progress with the company’s restructuring plans.”

Whether Ashley would be likely to fall in line remains open to question. His company lost a massive investment when Debenhams plc was put into administration with Sports Direct having previously built up an almost 30% stake in the company. He described the actions taken around the collapse of Debenhams as a “national scandal”.

Ashley has not responded to Duddy nor commented on the deal reached by M&G.

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