It beats being bought for a pound like Homebase (£90 million isn’t too shabby), but House of Fraser’s acquisition by Sports Direct is nonetheless an odd retail story.
Former investment banker Jeff Blue recently took Mike Ashley to the High Court over the non-payment of £14m, which he alleges was part of a verbal agreement promising him money in exchange for doubling the share price of Sports Direct to £8 within three years.
In most cases verbal agreements are deemed legally binding. But is it still considered valid after a two hour drinking session? It’s something Sports Direct owner Mike Ashley is about to find out.
The luxury lingerie business Agent Provocateur was sold for around £30m last week by its private equity owners 3i, in a controversial pre-pack administration to Mike Ashley, the billionaire behind Sports Direct.
Discount retailer Sports Direct has appointed Matt Pearson as an interim finance chief, following ongoing discontent among shareholders. He will also join the board.
The recent and widely publicised legal wrangling over the purported transfer of the remaining 11 per cent by Sir Tom Hunter to Sports Direct founder Mike Ashley has brought into sharp focus share transfer rights and restrictions known as ‘pre-emption rights’.