Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what plans they have to investigate the actions of JD Sports in relation to its decision to place its wholly owned subsidiary Go Outdoors into administration and then subsequently to reacquire that company from the administrators in a pre-pack deal without creditor liability.

Insolvency Practitioners appointed in an administration must report to the Insolvency Service on the conduct of an insolvent company’s directors within three months of the beginning of the insolvency. Where the Insolvency Service identifies evidence of misconduct an investigation will be undertaken where it is in the public interest to do so. Outcomes may include director disqualification or criminal prosecution where there is evidence of serious wrongdoing.

In a pre-pack administration, the appointed Insolvency Practitioner is under a duty to achieve the best result for the company’s creditors as a whole. There is a regulatory requirement to provide a statement to creditors explaining why a pre-pack sale was undertaken, what marketing was done, what valuations were obtained and any alternative options considered. This statement is also sent to the Insolvency Practitioner’s authorising body which monitors to ensure compliance with the regulatory requirements.

Where creditors are dissatisfied with the actions or decisions of an Insolvency Practitioner in relation to a pre-pack, they can raise the matter directly with the practitioner’s regulatory body.