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Frasers Group’s Mike Ashley has reportedly escalated a legal battle with FRP Advisory over the collapse of Debenhams.
According to the Mail on Sunday, the entrepreneur is taking legal action against the advisory firm after his £180m stake in the department store chain became worthless following its collapse in 2020.
A trial over the collapse will reportedly take place in May, according to the Mail on Sunday, with legal papers filed by Frasers Group lawyers accusing administrators at FRP Advisory of a criminal offence in their dealings with Ashley.
His legal team allege Geoff Rowley and Alastair Massey, administrators at the firm, “abused” their powers by “stifling investigation into the affairs” of Debenhams.
Prior to its collapse, Ashley had tried to take control of the failing chain, and since then, has reportedly wanted an independent expert to investigate the full details of its downfall.
The case will reportedly focus on a contested settlement between Ashley and the administrators over his purchase of fixtures and fittings in empty Debenhams stores.
Part of the agreement was that the businessman could not sue those involved in the company’s collapse, which he says was “illegal and unenforceable”. According to the Mail on Sunday, he now wants the agreement set aside.
Ashley previously initiated other High Court applications over the collapse and has made complaints to MPs and regulatory bodies about the company.
A City source told the Mail: “He has been agitating for a long time for people to look into these events and no one has been very interested.”
News of the legal battle comes as Ashley is reportedly eyeing a takeover of Gieves and Hawkes, the historic Savile Row tailor.
According to Sky News, Frasers Group is among several bidders who are plotting to acquire the brand, which is on the market following the collapse of its Hong Kong-based owner.
Industry sources told Sky that Frasers and a “small number of other parties” were expected to lodge revised bids for the brand this week.
Frasers Group and FRP Advisory have both been contacted for comment.
