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Mike Ashley looks set to crank up the row at JJB Sports over his controversial £1.5 million loan to the company's executive chairman Sir David Jones.
High Street sport retailer JJB, just months on from averting bankruptcy, has found itself in crisis again after it emerged at the weekend that Jones had taken a
£1.5 million loan from Ashley in 2007. Billionaire Ashley runs Sports Direct, JJB's arch-rival.
JJB yesterday attempted to end criticism over the loan by saying its board does not believe there is a conflict of interest because the loan was taken out before Jones joined JJB and he had told executive colleagues about it.
The Evening Standard revealed yesterday, however, that none of JJB's three non-executive directors —including the former chairman who remains on the board — knew about it and only found out when they read about it in the Press.
Now it has emerged that Ashley is challenging the chronology of Jones's version of events. He is reportedly saying that Jones asked for the loan on or around 3 October, 2007, two days after he joined the JJB board.
It is claimed Jones asked for the loan through chief executive Chris Ronnie, a close friend of Ashley, who was ditched by Jones soon after he became JJB executive chairman in January.
It is understood repayment of the loan remains outstanding.
Ashley is understood to be preparing a statement to be released by his lawyers on the matter.
The extraordinary row has taken a new twist after it emerged that Jones has apparently put his seven-bedroom executive home in West Yorkshire up for sale at an asking price of £2.25 billion.
Associates of Ashley have claimed the £1.5 million loan was made because Jones had been temporarily financially embarrassed. That has been strongly refuted by friends of Jones and JJB.
In its statement yesterday, the JJB board said the Ashley loan concerned a private company Advanced Network Technologies controlled by Jones.
Reader views (1)
The lies mean he has to go.
- Paul, London, 08/07/2009 10:39
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