6th Nov 2019 15:50
(Alliance News) - Sports Direct International PLC said Wednesday it will no longer look to buy any more troubled retailers, in response to an interview by The Times with Rachel Reeves, MP and chair of the Business Energy & Industrial Strategy Select Committee on Monday.
"Whilst there continue to be retailers in distress - with the latest example being Mothercare - Sports Direct currently has no intention of looking at saving any of these retailers whilst there is a lack of protection for shareholders/owners, because unscrupulous politicians are more interested in their own PR than doing what is right," Sports Direct said in a statement.
The FTSE 250 sportswear retailer's spat with Reeves first started when in late October, with its Chief Executive Mike Ashley called for Reeves to conduct an investigation into the group's failed Debenhams takeover, after criticising the committee's actions taken over the collapse of Thomas Cook.
In April, Sports Direct's 29% stake in the department store chain was wiped out after Debenhams itself appointed administrators to sell the company to a newly-incorporated entity controlled by Debenhams lenders, unlocking GBP200 million of financing.
Sports Direct at the time was bidding to acquire Debenhams, by underwriting a GBP150 million equity issue to existing Debenhams shareholders.
On Monday, Reeves in an interview with the Times newspaper said she and her select committee would not be "bullied" by Ashley into "what it should and shouldn’t look into".
https://www.thetimes.co.uk/article/no-nonsense-mp-who-holds-citys-failings-up-to-light-qgs206pd5
In response to Reeves's comment, Sports Direct on Wednesday accused Reeves of fobbing off the group's "legitimate request" due to the affair's publicity not being great enough.
Sports Direct called for shareholders that were wiped out in the failed takeovers of retailer Debenhams and five-a-side football pitch operator Goals Soccer Centres to demand that Reeves "takes action and treats the incidents fairly."
Shares in Sports Direct - which is headquartered in Shirebrook - were down 0.6% at 312.40 pence on Wednesday in London.
By Dayo Laniyan; [email protected]
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