26/11/2009 - Tesco in legal bid to recover money
The UK's biggest retailer has launched legal action to recover thousands of pounds in outstanding funds paid mistakenly for six bicycles which cost less than £1,000, sources have said.
Sports Direct subsidiary Universal Cycles, controlled by Newcastle United owner Mike Ashley, was paid £984,000 for six Muddy Fox Suspension Bikes which ought to have cost £984.
The Essex-based company has paid back £863,000 to Tesco, which claims it is retaining more than £121,000 in outstanding funds, sources added.
A legal battle has been launched in the High Court to get back the remaining money, legal costs and an extra £1,783 which the supermarket chain alleges Universal owes it in interest at 8% per year.
Universal was asked to repay the money 15 days after Tesco's finance team made the error on August 13.
Sources said some of the funds were repaid on September 29, but £121,412 is still outstanding.
The two parties are expected to hold a meeting in an attempt to resolve the matter out of court.
A spokesman for the supermarket chain declined to comment on the case.
Copyright © Press Association 2009
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