Sports Direct has dropped its challenge against Debenhams’ company voluntary arrangement, but will continue to fund that of property agent Combined Property Control Group (CPC).
In May, a majority of shareholders backed the Debenhams CVA proposals in May, which includes plans to close 22 stores.
In a statement, Debenhams said the CVA was “vital to adapt to the changing retail environment, and will provide a platform for [its] sustainable future growth”.
Chairman Terry Duddy said: “As Sports Direct has now acknowledged, it did not have sufficient interest to challenge the CVAs, as its businesses are not adversely impacted by the proposals and therefore had no legal basis for a challenge.
“However, by continuing to fund CPC’s challenge, Sports Direct is deliberately acting against the vast majority of Debenhams’ stakeholders. I call on CPC to withdraw its action, which we will vigorously defend.
“In the meantime, we continue to make good progress with the company’s restructuring plans, which are a vital step in preserving as many as possible of the jobs of the 25,000 people who work for Debenhams.”