Two of Britain's wealthiest men are embroiled in a bitter row over big money bets on flagging home shopping firm Findel (FDL).
At the time of the talks, shares in Findel had declined around 20% since the start of the year because of poor performance across its education, gifts and sports retail divisions.
The business has been without a chief executive since March.
Sports Direct claims both Toscafund and Schroders agreed to support the appointment of Ben Gardener as a non-executive director as part of a plan to improve performance.
'Sports Direct believed that the combination of Sports Direct as a supportive shareholder with retail expertise and Mr. Gardener as a board director would have added value to Findel for the benefit of all of its shareholders,' says a Sports Direct statement.
But Findel shareholders yesterday voted in an Extraordinary Generam Meeting (EGM) against appointing Gardener with neither Toscafund nor Schroders backing the proposal.
In a statement, Sports Direct says it 'would not have considered working with Findel, or proposed Mr. Gardener's appointment to the Findel board, without prior indications of support from Toscafund and Schroders'.
Only a day after Sports Direct declared it had acquired a 20% stake in Findel, helping drive its shares 18% higher, Toscafund sold a third of its stake in the business, banking around £18 million.