The Mike Ashley-led Frasers Group has called on MPs to launch an inquiry into the handling of the sale of fashion chain Peacocks to a group backed by former owner Philip Day.
Ashley, who owns Sports Direct and House of Fraser, failed in his attempt to buy the ailing fashion brand out of administration after former owner Day backed a management-led deal to keep the retailer afloat.
While the deal saved around 2,000 jobs and half of its former 423-strong store estate, Frasers Group issued a stock market update last night complaining that the actions of the administrators FRP and Day had made it “virtually impossible” for a third party to buy the business.
A separate letter issued by restructuring experts Duff & Phelps, acting on behalf of Frasers, to FRP claims that Ashley had “lost all faith in the process” after a “number of obstructions”, according to The Guardian.
Frasers submitted a £66m bid to buy Peacocks out of administration, which was topped by a separate bid from Simons Group after it was put to former owner Day who retains significant control of the chain’s future as its key creditor.
Frasers Group also alleged that Peacocks’ intellectual property rights – such as brands and logo – had been reassigned before the chain went into administration to deter outside bidders.
The Mike Ashley-controlled group is set to raise concerns of the sale process with the All-Party Parliamentary Group on fair business banking.
A spokesman for FRP said: “All of our sales processes are fair, robust and conducted confidentially.
“All interested parties are given the same access to information and outcome of those processes, and our statutory investigations are communicated, in line with our duties, to creditors at the appropriate time.”
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