Debenhams legal battle

sPoRTs Direct has threatened to sue Debenhams’ administrators after Mike Ashley lost his £150m investment in the department store.

The retail tycoon claimed administrator FTI consulting was conflicted due to its position as adviser to the company’s lenders and should resign.

In a letter to FTI, Ashley’s lawyers, RPc, said they would challenge the appointment and the consequences of it. ‘sports Direct will do everything available to it to unwind the damage caused to the company and other stakeholders (including large and small shareholders),’ it said.

Ashley, 54, suffered a massive defeat this week when Debenhams was placed into the hands of its lenders. It means his 30pc stake in the retailer, once valued at £150m, is now worth nothing.

Debenhams collapsed into administration despite Ashley’s efforts to seize control and install himself as chief executive.

The department store’s lenders rejected his final offer of £200m as it failed to meet their demands.