Mike Ashley’s group brought a joint challenge to the CVA alongside Combined Property Control Group (CPC), which owns six Debenhams stores, last month.

Debenhams said today Sports Direct has now withdrawn its challenge but was “continuing to fund the ongoing challenge” by CPC.

The department store operator said Sports Direct had “agreed to bear any costs award eventually made against CPC and in Debenhams’ favour” following the conclusion of the challenge.

Debenhams continues to defend the challenge and insists it is “without merit”.