Department Stores

Sports Direct launches legal action against House of Fraser over CVA disclosures

Mike Ashley, owner of Sports Direct, filed a petition against House of Fraser on Friday (5 May) following the department store’s decision to close some of its outlets.

Sports Direct holds an 11.1% stake in House of Fraser and Ashley claimed the company was “frozen out” and “repeatedly denied information to which it is legally entitled”.

Sports Direct is now seeking an injunction forcing House of Fraser to provide a copy of its corporate plan.

Liam Rowley, head of strategic investments at the retailer, said: “We have been frozen out by House of Fraser. Their dealings in China are opaque, and it is blatant that we have been unfairly prejudiced. We have no option other than litigation to protect the interests of Sports Direct and its shareholders.”

House of Fraser announced that it would be closing some of its stores following a 51% stake sale to Hamleys owner, C.Banner.

The company is set to reveal which stores will be affected in June and closures are expected to take place next year.

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