THE future of Debenhams could be in doubt again following a legal challenge to the deal which saved it from collapse.
Sports Direct, which owns almost 30 per cent of the department store chain, is backing a court case brought by one of the store’s landlords.
It is seeking to overturn a company voluntary arrangement (CVA) which proposed making the business viable through the closure of 50 Debenhams stores and rent cuts of up to 50 per cent on many others.
The company’s 166 branches include a branch at New Bond Street in Weymouth.
Combined Property Control, the landlord of several Debenhams sites, argues that the arrangement was not properly run.
A court hearing began yesterday and is expected to run until Friday, although the judgement is likely to be delivered later.
Debenhams says it is confident of winning the case and has pointed out that the CVA was backed by 90 per cent of its creditors.
However, the department store was reported to have hired accounting firm Deloitte to draw up a plan in case the legal challenge succeeds.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here