Mike Ashley’s Frasers Group fails to secure coronavirus loan The retail group also announced it had finally resolved a €674m (£589m) dispute with the tax office in Belgium

An application for a coronavirus loan by Mike Ashley’s Frasers Group has been rejected by the UK government, sending the company’s share price down by as much as 2.5 per cent on Friday.

Frasers Group, which rebranded from Sports Direct in December, said it had “not been accepted as eligible” for the Covid Corporate Financing Facility scheme, which was set up last month to help larger firms survive the coronavirus lockdown. The group’s statement to shareholders did not make clear why it had not been accepted.

Frasers Group also announced it had finally resolved a €674m (£589m) dispute with the tax office in Belgium and agreed to pay “an immaterial amount” to the Belgian tax authority. The company declined to comment on the exact sum paid.

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Frasers Group, which also includes the retail brands House of Fraser, Evans Cycles and Jack Wills, first revealed it was being pursued by Belgian authorities over the tax bill in July 2019. At the time, the revelation forced Mr Ashley’s firm to delay the publication of its financial results and saw the departure of the company’s long-time auditor, Grant Thornton.

Coronavirus lockdown

Frasers Group has closed its stores following the Government-mandated lockdown. Last month, however, Mr Ashley faced a backlash after he insisted his Sport Direct stores should remain open despite Government instructions, claiming the sports equipment sold were essential items.

Days later, in an attempt to repair the damage, Mr Ashley published an open letter on the London Stock Exchange apologising for “the misunderstandings”, saying he would “learn from this and will try not to make the same mistakes in the future”. He also admitted his actions had been “ill-judged and poorly timed”.

Sports Direct has also drawn criticism for reportedly hiking the online price of some pieces of equipment by as much as 50 per cent during the lockdown.