Sports Direct to make legal challenge to Debenhams rescue plan
Sports Direct is making a legal challenge against Debenhams’ rescue plan, it has emerged.
The Shirebrook firm is reportedly backed by one landlord, CPC, and will reignite its feud with the board of the troubled high street chain – despite Debenhams’ CVA proposals being voted through in May.
Terry Duddy, Debenhams executive chairman, 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.”
A spokesperson for Celine UK NewCo 1, the firm which bought Debenhams out of administration, 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.”
Sports Direct took a £150m hit when Debenhams went into administration earlier this year, with the value of its shares wiped out.