JJB Sports’ lawyers have threatened legal action against Sports Direct deputy chairman Mike Ashley as the row over his £1.5 million loan to JJB Sports chairman Sir David Jones intensifies.
JJB Sports’ lawyers Herbert Smith have written to Ashley demanding and an apology and a retraction about comments regarding the timing of the loan, according to The Daily Telegraph.
Ashley’s lawyers Mishcon de Reya are also understood to have threatened to report JJB Sports to the Financial Services Authority over a statment it had made earlier in the week.
The row centres around the timing of the loan. Ashley said that Jones asked for the £1.5 million after he had joined JJB Sports. This has caused concerns over a potetnial conflict of interest. JJB Sports said the arrangement was made before Jones joined the company and issued a statment in support of Jones earlier this week.