Creditors to Courts, the stricken furniture retailer, have secured the right to take control of its overseas businesses if the London-listed arm of the group is unable to pay back its debts in full.

The banks, led by Bank of Nova Scotia and including Royal Bank of Scotland, yesterday forced Courts to file for administration after they refused to grant covenant waivers on a £280m (€400m) credit facility and said they would not grant the group access to further capital.