Mike Ashley's Frasers Group said it has finally resolved a €674 million (£588 million) dispute with the Belgian tax authority

It said it took the "decision to settle these matters now given the uncertainty" affecting the company's finances.

Last year, the company's financial results were delayed after the retail group was hit by the tax claim shortly before its annual figures were due to be announced.

It subsequently split with its accounting firm Grant Thornton, replacing them with auditor RSM in October.

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The Sports Direct owner also told shareholders that the company was not "accepted as eligible" for the Bank of England's Covid Corporate Financing Facility (CCFF).

Companies such as Primark owner Associated British Foods have announced recently that they are eligible to join the scheme, which is administered by the central bank on behalf of the Government.

In a statement, the company said: "Frasers Group has taken the commercial decision to settle these matters now given the uncertainty is affecting Frasers Group's banking lines and its suppliers' credit insurance where, due to store closures as a result of the current Covid-19 crisis, Frasers Group understands the majority of new credit insurance cover has been withdrawn for the time being."

Frasers Group, which rebranded from Sports Direct International last year, has closed its stores following the Government-mandated lockdown in response to coronavirus.

Mike Ashley drew criticism from MPs and unions last month after he initially tried to claim Sports Direct was an essential operator for keeping the nation fit in a bid to keep stores open.

He later apologised for "ill-judged and poorly timed" emails to the Government and poor communication with employees.

It comes amid speculation that the entrepreneur is to sell Newcastle United - the football club he bought in 2007 - for around £300 million.

Shares in the Frasers Group dipped 2.1% to 231.2p in early trading.

Retail sales reported the sharpest fall on record last month as clothing sales plunged by a third, according to new figures.

The Office for National Statistics (ONS) said total sales volumes dived 5.1% as many stores shut their doors in the face of the coronavirus.

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It added that clothing store sales saw a particularly sharp fall when compared with February, moving 34.8% lower.

Meanwhile, food stores reported their strongest growth on record in March, as sales jumped 10.4% with shoppers stocking up on essential groceries.

Supermarkets saw sales volumes increase by 10.3% while alcohol-focused stores saw a 31.4% surge in volumes.

Meanwhile, the ONS said the total value of online food sales in March was more than double the same month last year, rising by 101%.

Rhian Murphy, head of retail sales at the ONS, said: "Retail sales saw their biggest monthly fall since records began over 30 years ago with large declines in clothing and fuel, only partially offset by strong food sales.

"Online-only retailers saw strong growth though, with many high street stores also unsurprisingly seeing a boost to web sales."

Total sales declined as increases in online sales failed to offset lower in-store sales, after non-essential stores were told to close their doors on March 23.

It said a record high of 22.3% of sales were made online as delivery operations continued.

Ayush Ansal, chief investment officer at Crimson Black Capital, said: "This is retail Armageddon.

"While the January retail sales data showed signs of the Boris Bounce, the March data reflected the Covid-19 collapse.

"Unsurprisingly, food stores performed well in March and more people than ever started to buy online."

Fiona Cincotta, financial market analyst at GAIN capital, said: "The data only captures the start of the lockdown, so we know these figures are going to get a lot worse.

"Added to that, without a vaccine it is highly unlikely that there will be a quick rebound in the retail sector.

"Even when the UK starts to ease lockdown restrictions and reopen its economy, there will almost certainly be restrictions on shops, with limits to customer numbers at any one time."

Bar and restaurant group Loungers has raised around £8.3 million from shareholders to boost its finances in the face of coronavirus.

The company, which runs 138 Lounges and 29 Cosy Clubs, shut all its sites last month due to the Government-mandated lockdown.

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The share placing, which was brokered by Peel Hunt, raised the proceeds at a 16.1% premium against its previous closing share price.

Loungers chief executive Nick Collins said the business is now "in a strong financial position with sufficient liquidity to come through this crisis and to take advantage of the opportunities that will emerge when restrictions are lifted".

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