Mike Ashley’s Sports Direct challenges Debenhams turnaround

Debenhams shopImage copyrightGetty Images

Mike Ashley’s Sports Direct has launched a last-minute legal challenge to Debenhams’ restructuring plans.

Debenhams rejected two last-ditch takeover offers from Sports Direct before the keys to its shops were handed over to its lenders.

Now Sports Direct has turned to the courts in a bid to overturn a company voluntary arrangement (CVA) that would see Debenhams closing 50 stores.

Debenhams has called the challenge “spurious”.

A CVA is an insolvency process that allows a business to reach an agreement with its creditors to pay off all or part of its debts.