Mike Ashley's Sports Direct set for legal battle over single store in Iceland

 
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Sports Direct Boss Mike Ashley Attends High Court Over Alleged £15m Banker Deal
Mike Ashley is launching a legal battle over Sports Direct's only Iceland branch (Source: Getty)

Mike Ashley's Sports Direct has filed notice of its intention to sue the owners of its only Icelandic store.

The company is set to press a legal claim against Sigurdur Palmi Sigurbjornsson, as well as two companies associated with his mother Ingibjorg Palmadottir. The family owns 60 per cent of Sports Direct’s only shop in Iceland.

Sigurbjornsson today confirmed to Icelandic news site Visir that the dispute related to a rejected buyout offer for the store.

Sports Direct owns 40 per cent of the outlet. It offered the equivalent of £90,000 for the remaining share, but the store brings in earnings of around €2m (£1.8m) a year.

Read more: Iceland finally defrosts its capital controls

Sigurbjornsson is the stepson of Jon Asgeir Johannesson, who owned stakes in Hamleys and House of Fraser before the Icelandic banking crisis.

The family is also a former employer of Jeff Blue, the ex Sports Direct director who lost a case against Ashley last month. Blue himself had owned a 15 per cent stake in the Iceland store but sold it back to Sports Direct before falling out with Mike Ashley.

Last month Ashley successfully fought off claims by Blue that he had promised to pay him £15m if he boosted Sports Direct's share price to £8 during a meeting at a pub.

Read more: This outlandish case made Mike Ashley look like the good guy

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