Mike Ashley’s Frasers Group heads to High Court to settle its long-running battle with Debenhams.
The move is being seen as Group’s aim to kickstart investigations into Debenhams’ directors and investors.
Frasers Group has applied to the High Court to set aside a settlement that was agreed with Debenhams’ administrators at FRP advisory earlier this year, wherein Mike Ashley had decided not to pursue any legal action.
Reportedly, the Group has been miffed ever since Debenhams had filed for administration in 2019, when Mike Ashley’s almost 30 per cent holding was wiped out.
Then in January this year, FRP sold the Debenhams brand and website to Boohoo for £55 million, which not only led to closure of 118 stores, but also hit around 12,000 jobs.
After a court application by Mike Ashley, Debenhams was wound up by Judge Daniel Schaffer in the Insolvency and Companies Court in January this year. The winding up order was made following the acquisition of the brand and the website by Boohoo.
The Judge also said that circumstances of Debenhams’ collapse should be probed by the official receiver, as there may have been assets available for distribution to shareholders.