Tycoon Mike Ashley’s Sports Direct is staging legal action over ownership of a store in Iceland.
Sports Direct is suing the family of former Baugur boss Jon Asgeir Johannesson, the Sunday Times reported.
The family owns 60% of the Sports Direct branch in the Icelandic capital Reykjavik, which is the most profitable store in Sports Direct’s international portfolio.
Sports Direct is suing Sigurdur Palmi Sigurbjornsson, the stepson of Johannesson, and two firms linked to Mr Johanesson’s wife, Ingiborg Palmadottier – Guru Invest and Rhapsody Investments.
The dispute is about an alleged breach of contract.
The Reykjavik shop, which opened in 2012, was originally a joint venture between Sports Direct, Sigurbjornsson and Jeff Blue, the former investment banker who recently tried to sue Mr Ashley in a high-profile courtroom fight when the tycoon bragged of his “power drinking” abilities.
Blue was persuaded to sell his 15% stake in the Icelandic business when he believed he would be promoted to become Sports Direct’s finance boss. However, he ended up leaving Sports Direct in 2015.
It has been reported that Ashley tried to exercise an option to buy out Johannesson’s family’s stake in the Icelandic shop for €100,000 but that was rejected because the branch is said to be worth €20m. It generates annual sales of €10m and earnings of €2m.
No comment was available from Sports Direct.
