Sports Direct boss Mike Ashley had threatened legal action over the Debenhams plc administration through which he lost his entire stake in the company, and now Debenhams has confirmed that the legal action is happening.
Sports Direct, the sportswear retailer owned by billionaire Mike Ashley, confirmed the sale of the freehold to its Shirebrook logistics centre to Kwasa Logix Sportivo for just over 120 million pounds in cash on Tuesday.
There are fears that the biggest hit from the Debenhams CVA if it’s approved this week will be suffered by smaller landlords with the 166 stores the retailer operates shared between 70 different property owners.
As House of Fraser heads towards the first anniversary this summer of its failure and buyout by Sports Direct, there have been reports that landlords who agreed to rent-free deals are losing patience with the retailer
Sergio Bucher, the CEO who hoped to turn Debenhams around but has presided over its decline, is expected to set down from his role within the next few days with some observers saying news could come as soon as Monday.