Debenhams has called for Mike Ashley to drop a challenge to its store closures and rent reductions, after property firm M&G withdrew from a similar action.
The high street retailer announced on Monday that it had undertaken "constructive discussions" with M&G and that both parties had "resolved their concerns" surrounding a company voluntary arrangement (CVA).
They have agreed to withdraw the court action which related to the proposals.
However, a challenge from Mr Ashley's Sports Direct – which formerly owned almost 30 per cent of Debenhams – and Combined Property Control (CPC) remains outstanding.
Lower rents
The proposals, which were approved by the majority of creditors in May, involve 50 store closures as well as lower rents on more than 100 outlets.
Mr Ashley failed in his attempts to take control of the department store prior to its collapse and subsequent sale in April.
The tracksuit tycoon condemned the pre-pack administration of the retailer, which saw it fall into the hands of its lenders, as a “national scandal”. – PA
