Sports Direct launches legal challenge to Debenhams CVAs

Mike Ashley’s Sports Direct group has begun a legal challenge against Debenhams’ rescue plan. The troubled department store chain has confirmed it has received challenges to its company voluntary arrangements from parties including Sports Direct. The sportswear retailer saw its 29% stake in Debenhams wiped out earlier this year after its lenders took over the business. Terry Duddy, executive chairman of 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.” See also: Debenhams proposes 22 store closures through CVAs A spokesperson for Celine, the consortium that owns 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.” To send feedback, e-mail pui-guan.man@egi.co.uk or tweet @PuiGuanM or @estatesgazette