Ashley Summoned To Talk!

Last updated : 11 February 2015 By Footy Mad - Editor

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In fact, his Sports Direct firm is worth a whopping £4.3 billion alone. That's not to mention his personal wealth, estimated at £3.75 billion, according to the Sunday Times Rich List.

So his former employees are scratching their heads over the complicated collapse of one of Sports Direct's smaller retail clothing units, West Coast Capital USC, also owned by the Newcastle United magnate.

There are a number of curiosities about USC falling into administration that staff and Scottish MPs have a problem with.

Ashley's Sports Direct bought a majority stake in USC and its 90 stores in 2011, through two holding companies.

However, fashion label Diesel decided to sever its 15 year relationship with USC in 2014, after it obtained a court order to get the store to cough up the cash for the debts it owed Diesel.

Diesel's claim was made on Dec. 15, according to court documents, and after a meeting with USC’s directors led by Sports Direct CEO Dave Forsey on Dec. 23, it was confirmed that the unit would not be able to pay its outstanding debts to Diesel.

Now this is where politicians and staff have become confused.

Ashley’s Republic clothing chain, known as the "premium lifestyle arm" of Ashley's empire, bought USC out of administration.

Administrators Duff & Phelps were forced to accept Republic's offer as Ashley's speedy purchase would mean that most of USC could continue trading.

Politicians are now asking Ashley to appear in front of the Scottish Affairs Committee to answer questions over the complex nature of the collapse, which resulted in the loss of 200-Ayrshire based warehouse jobs and the closure of 28 stores.

Ashley has yet to reply to the formal request but lawmakers are able to summon him to appear should he decline.