The Sports Direct boss Mike Ashley has threatened legal action to remove Debenhams administrators after his stake in the department store group was wiped out and the company put into the hands of its lenders.
Debenhams listed holding company entered pre-pack administration on Tuesday, rendering shareholders investments, including Sports Directs near-30% stake, worthless.
The retailers 165 UK outlets continue to trade via a new company owned by its banks and bondholders in return for reducing the companys debt pile, which had topped 600m.
In a letter to FTI Consulting, whose executives were appointed joint administrators of Debenhams, Sports Directs lawyers called for the insolvency process to be reversed or face further action.
The lett…
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