Sports Direct founder Mike Ashley has resolved a legal dispute in the USA a day after a court there demanded he gave evidence.

New York Supreme Court judge Andrew Borrok had called the Queen’s Bench of the High Court in London for Ashley to provide “compelling oral evidence for use at trial” the Mail on Sunday reported.

The dispute concerned Ashley’s part in the $100m acquisition of US retailer Eastern Outfitters.

It was alleged that the transaction was conducted in haste and there was only “limited due diligence over a two-day period” in 2017.

Vestis, which sold Eastern Outfitters’ $17m debt to Ashley, giving him control over the business, claimed Sports Direct still owed it money.

Representatives of Ashley had maintained that he could not give evidence because he had left negotiations to his lieutenants Howard Moher and Justin Barnes.

However, a letter sent by lawyers from both sides said binding terms have now been agreed and the judge was asked not to go ahead with legal proceedings.

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