Mike Ashley steps up Debenhams legal battle and eyes Gieves & Hawkes swoop

1 Comment

Mike Ashley is stepping up his legal battle over the controversial collapse of department store chain Debenhams.

Mike Ashley

The court hearing will be the latest step in Ashley’s campaign following his failed attempts to gain control of the retailer and the loss of his 30% stake

The Frasers Group tycoon, whose £180m stake in Debenhams was wiped out when it went bust two years ago, is taking administrators FRP Advisory to court after accusing the company of a “criminal offence” in its dealings with him.

In legal papers seen by The Mail on Sunday, Ashley’s legal team allege that FRP’s Geoff Rowley and Alastair Massey “abused” their power by “stifling investigation into the affairs” of Debenhams.

A trial will now take place in May 2023.

The court hearing will be the latest step in Ashley’s campaign following his failed attempts to gain control of the retailer and the loss of his 30% stake.

The rights to Debenhams brand and its website were sold to etailer Boohoo in January 2021, but Ashley has called for an independent expert to investigate full details of its collapse.

At the heart of the legal spat is a contested settlement between Ashley and FRP relating to the tycoon’s acquisition of fixtures and fittings from empty Debenhams stores.

Part of that agreement said that Ashley could not sue anyone involved in the retailer’s collapse. But Ashley claims that is “illegal and unenforceable” and wants the agreement set aside.

Details of the legal row emerged during the same weekend as Ashley’s Frasers Group entered the race to acquire Savile Row tailor Gieves & Hawkes.

According to Sky News, Frasers is among a small number of bidders jostling for control of the business, which is being sold after its Hong Kong-based owner Shandong Ruyi Technology Group collapsed into liquidation.

Formal bids are expected to be lodged this week.

Gieves & Hawkes has held royal warrants for the late Her Majesty Queen Elizabeth II, King Charles III and the Duke of Edinburgh.

It has also dressed some of the most important figures in English history, including Sir Winston Churchill and Lord Nelson.

The deal would add yet another brand to Frasers’ growing stable of businesses. It already owns the likes of Sports Direct, House of Fraser, Flannels, Missguided, Jack Wills, Evans Cycles and Sofa.com.