Sports Direct seeks support for Debenhams legal challenge
The Sports Direct group is attempting to gather support for a legal challenge to Debenhams' restructure package approved earlier this month.
The department store, secured approval from creditors and landlords to enter a CVA (Company Voluntary Arrangement) enabling it to close 22 stores by early next year.
As a result, Debenhams will also seek rent reductions on more than 100 of its stores with a range of 25% to 50% is it is believed. In addition a further 30 stores will be closed in the coming years.
A source close to Sports Direct said the company was talking to landlords and other third parties about legal action as it published a review of Debenhams’ CVA process on Sunday, The Guardian reported.
The document also says the company found "serious issues" within the CVA process that needed addressing. Now, creditors have until 6 June to challenge the Company Voluntary Arrangement deals.
Further to this, the document criticises the department store's plan to to exit its distribution centre in Sherburn next year.
