Mike Ashley’s Sports Direct has launched a last-minute legal challenge to Debenhams’ restructuring plans.
Debenhams rejected two last-ditch takeover offers from Sports Direct before the keys to its shops were handed over to its lenders.
Now Sports Direct has turned to the courts in a bid to overturn a company voluntary arrangement (CVA) that would see Debenhams closing 50 stores.
Debenhams has called the challenge “spurious”.
A CVA is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts.
Sports Direct mounted its complaint on Monday night, just hours before a standard 28-day window to appeal against the CVAs expired.
It followed a decision by Debenhams’ creditors on 9 May to try to improve the fortunes of the