Sep 2, 2019
Ashley backs challenge to Debenhams rescue deal
AFP A deal that saved Debenhams from administration will be challenged in the High Court this week, putting the retailer's future back into doubt. A commercial landlord - backed by Mike Ashley's Sports Direct group - is fighting the plan which saw Debenhams agree to shut 50 stores and secure rent cuts on others in May. If successful, it could lead Debenhams to fall back into administration. Shortly afterwards the creditors approved the rescue deal - or company voluntary agreement - which will see landlords take rental cuts of up to 50%. Combined Property Control, which owns the freehold to six Debenhams stores, including Southampton, Harrogate and Folkestone, argues that the CVA was not run properly and should be overturned. "Of the latest legal case, a spokesperson for Debenhams said:"We remain extremely confident this challenge is without merit and expect it to fail. According to reports over the weekend, Debenhams has asked advisers at professional services firm Deloitte to come up with contingency plans should it lose the case and its CVA be derailed.
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