Mike Ashley’s Sports Direct has launched a last minute legal challenge against Debenhams restructuring plans that will see 50 department stores close.
Debenhams confirmed they have received applications from Sport Direct to challenge the compulsory voluntary arrangement (CVA).
Terry Duddy, executive chairman at Debenhams said, “We believe the challenges to the CVAs to be without merit and will vigorously defend them.
“Given the overwhelming support for the proposals from creditors, including over 80% of landlords, this is an unnecessary distraction as we implement our restructuring plans.”
The new owners of Debenhams said, “We note the spurious challenges to Debenhams’ CVA proposals, which were approved by the vast majority of landlords and more than 90% of all creditors.
“We will move forward with our debt restructuring process as expected.
“The CVA provides a platform to deliver a turnaround in the business for which the lending group has committed £200m of new funding and remains supportive.”
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