House of Fraser is threatening legal action against Mike Ashley and Scottish retail tycoon Sir Tom Hunter following a deal which could derail an agreed Chinese takeover of the department store.

In a press conference on Friday, House of Fraser said that it had agreed to be bought by Chinese group Sanpower in a deal which valued the company at £450 million. The deal saw Sanpower acquire 89% of the UK business and Mr Ashley is thought to have bought the remaining 11% stake from Sir Tom before the weekend. The deal would require shareholder and Chinese regulatory approval.

House of Fraser has now threatened legal action against both Sir Tom and Mr Ashley, saying that Sir Tom should have offered his shares to House of Fraser’s other investors first under pre-emption rights attached to the stake. “House of Fraser has noted the share sale by Sir Tom Hunter to Mike Ashley. We have sent legal letters to both parties, reminding them of the proper procedures to transfer shares, which have not been followed,” a spokesman for the retailer said.

“This situation has no impact on our plans to sell to Sanpower Group and we will be making an announcement in due course.”

However, Sir Tom retorted: “We have received the letters, our lawyers have responded and we are entirely comfortable with our position”.