MIKE Ashley's Sports Direct is looking to launch legal action against Debenhams over a controversial rescue deal secured this month.
The sportswear group is set to challenge two company voluntary arrangements (CVA) that could lead to the closure of 50 the chain's 166 stores, with rent cuts expected on dozens more locations.
A source close to Sports Direct said the company is currently in talks with a number of third parties, including landlords, about a possible joint legal challenge.
"The CVA votes, with one receiving 95 per cent support and 97 per cent for the other, bear more resemblance to the presidential elections in North Korea than they do to a fair, open and honest process," the source said.
It came as Ashley's retail group issued a statement outlining "serious issues" with the department store chain's CVA process.
"With an unprecedented turnout, the CVA proposals had overwhelming support from landlords," a spokesperson for Debenhams said.
KPMG, Debenhams's administrator, said: "We are entirely satisfied that the sale process was robust and that the timetable was reasonable."
(c) 2019 City A.M., source Newspaper