One of department store group Debenhams’ landlords is seeking to challenge the retailer’s rescue plan by overturning a legal decision on its CVA.
In September, Debenhams got the legal go-ahead to close branches after Combined Property Control Group (CPC), the owner of six properties leased by Debenhams, opposed the CVA.
CPC has now launched an appeal of the decision, The Daily Telegraph has reported.
A hearing on the matter is expected in January.
It is understood that the challenge, thought to be funded by Sports Direct, relates to a single store, and that Debenhams is continuing to implement its CVA.
The dispute will be an unwelcome distraction for Debenhams after a turbulent year during which lenders took control of the business and it faced attacks from former shareholder Mike Ashley, founder of Sports Direct, whose equity along with that of other investors was wiped out.
The retailer is now embarking on a turnaround strategy under new leadership including chief executive Stefaan Vansteenkiste and chair Mark Gifford.
Ahead of peak trading, Debenhams secured an additional £50m of funding to enable it to trade as well as possible during the Christmas period.
No comments yet