Sports Direct faces 5.4 million pound fine from JPMorgan

Sportswear retail chain Sports Direct could be faced with a 5.4 million pound bill after asset management firm JPMorgan filed court documents regarding the refurbishment of its former Wigan unit.

According to JPMorgan, the retailer owes the money after it left the site in a state of disrepair once it vacated the property in 2019, breaking agreements in its 10-year lease that had first been signed in 2014.

Initially reported on by the Financial Times, JPMorgan filed the complaint against the Frasers Group-owned Sports Direct in court documents this month, in which it had claimed the company had failed to carry out the contractually required refurbishment work, causing “loss and damage”.

Lawyers for the bank said Sports Direct had more than six months to make good “any alterations, cover up or changes it made without the landlord’s consent”, with the bank then having to initiate the work itself, reportedly amounting to costs of 3.3 million pounds.

JPMorgan alleged that it had lost 1.8 million pounds in potential rent over the period it took to refurbish the property, and has asked for interest to be applied to this amount, resulting in the balance of 5.4 million pounds.