In response to the claim, Oasis has placed an erratum note in its prospectus which says that Mr and Mrs Graham Brown have threatened legal proceedings against the company and the former directors of Pinecord, which traded as Oasis.
The note says: "The directors, excluding the former directors of Pinecord and David Sarson, finance director, having reviewed the information available to them and having taken independent legal advice, are of the view that the claims have no merit and that Oasis has no legal liability in respect of such claims."
Michael and Maurice Bennett joined in 1989, expanding the chain before problems forced it into receivership in 1991.
The Bennetts, who bought the business from the receiver for around pounds 1.5m, now stand to make pounds 5.5m each from the float. The company, with 70 stores, is valued at pounds 76m.
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