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Sports Direct launches legal battle against House of Fraser claiming 'unfair prejudice'

Sports Direct to take House of Fraser to court

Sports Direct has begun legal proceedings against the embattled House of Fraser, claiming the department store’s treatment of the sports chain has been “unfairly prejudiced” in the ongoing business restructure.

Mike Ashley’s Sport Direct, which owns 11.1% of the House of Fraser, is looking to take its fellow retailer to court to gain access to its business plan.

House of Fraser announced it would close a number of stores following investment from the Chinese C.banner, the new majority owner, earlier this week. The 169-year-old company has recently been plagued by a revolving c-suite, a floundering e-commerce strategy and questions over what it stands for as a brand.

Sports Direct has applied for an injunction from the High Court in London that will require House of Fraser to provide a copy of its revamped business plan and other information.

Its 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.”

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