Sports Direct Under Investigation For Pre-pack Administration Of USC

An investigation is being undertaken by the government’s Insolvency Service in relation to Sports Direct and the administrators for the former fashion retailer USC.

The investigation has come about after Mike Ashley, the founder of Sports Direct was called by a Scottish Parliament committee to provide evidence on the end of USC.

The Scottish Parliament committee are examining the way about 80 staff at a USC warehouse were made redundant when administrators were called in. It is believed around 200 workers at the warehouse lost their jobs, with more than half of those being agency staff, and it is claimed that they were made redundant just 15 minutes following notice of consultation.

Consultation must be at least 45 days before redundancy takes place before redundancy tales place when relating to 100 or more employees.

If the employment tribunal finds that the redundancies were not correctly handed the workers could receive up to 8 weeks pay on top of any redundancy payment owed.

This case shows that it is critical in a time precious scenario such as with a pre-pack administration that the business has all advisors involved as soon as possible.

For help or advice in relation to all insolvency proceedings please do not hesitate to contact our Insolvency Department on 0800 689 8689 or via our online contact form.

Pauline Rigby

About Pauline Rigby

Pauline Rigby is Head of the Corporate and Restructuring team at Forbes Solicitors. Pauline’s blogs cover a wide range of corporate issues, specifically areas including company formation, banking, joint ventures and shareholder matters, contractual matters and equity fundraising or investing.

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