Debenhams’ listed holding company entered pre-pack administration on Tuesday, rendering shareholders’ investments, including Sports Direct’s near-30% stake, worthless. The lawyer’s letter makes clear that Sports Direct reserves the right to apply to the courts for FTI’s “removal as administrators of on the grounds that you are, inter alia , conflicted and unable to independently perform your duties of investigation”. The letter, which was sent by Sports Direct’s law firm, RPC, said FTI was unable to do so independently. Lenders turned down Ashley’s various suggestions because they all involved him being made chief executive of Debenhams.
The Sports Direct chief executive was keen to put Debenhams together with House of Fraser, the department store group he bought out of administration for £90m last year. The shares were rendered virtually worthless as a result of the administration later that day. FTI had not responded to a request for comment at the time of publication.
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