SPORTS Direct has launched a legal bid against House of Fraser, following the firm’s move to close stores as part of a rescue plan.
Mike Ashley’s sports chain owns an 11.1% stake in the department store which last week announced a major restructuring.
The billionaire says his company has been “repeatedly denied information to which it is legally entitled”.
According to a petition lodged with the High Court in London on Friday by Sports Direct subsidiary West Coast Capital, the billionaire is seeking an injunction requiring House of Fraser to provide a copy of its corporate plan.
A High Court writ says Sport Direct, which does not have a representative on the House of Fraser board, should be provided with a copy of the department store’s corporate plan.
Sports Direct’s head of strategic investments Liam Rowley, said: “We have been frozen out by House of Fraser.
“Their dealings in China are opaque, and it is blatant that we have been unfairly prejudiced.
“We have no option other than litigation to protect the interests of Sports Direct and its shareholders.”
The legal move follows a tumultuous few weeks for House of Fraser, which last week confirmed that C.banner, the Chinese owner of Hamleys, is to take majority ownership of the group and will oversee a sweeping store closure programme.
The sale is conditional on House of Fraser shutting some of its 59 stores, which will be carried out through a so-called company voluntary arrangement.
The exact number of closures has not been disclosed.
The chain has four stores in Scotland.
Glasgow has a House of Fraser store on Buchanan Street, while there is also an outlet in Dumbarton at Loch Lomond Shores, Alexandria.
Edinburgh has two House of Fraser stores on its Princes Street, with the historic Jenners department store owned by the chain and a separate House of Fraser outlet in the west end of the street.
House of Fraser has 6,000 employees and 11,500 concession staff, with millions of pounds having been pumped into the retailer to keep it on an even keel.
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