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Tag: sports direct

  • Jack Wills sold to Sports Direct

    Jack Wills sold to Sports Direct

    Struggling UK fashion chain Jack Wills has been bought by Sports Direct for £12.75 million after being placed in administration.

    Sports Direct, owned by retail entrepreneur Mike Ashley, has bought Jack Wills’ stock and taken over its distribution center, 100 stores and employees across the UK and Republic of Ireland in what is known as a “pre-pack administration” deal.

    The fate of the brand’s stores in Hong Kong, Singapore and the US is not yet known with “alternative options being considered” by the company’s directors, according to a statement released overnight.

    The Jack Wills business sold to Sports Direct has about 1700 staff spread across the business, six franchised stores in Kuwait, Saudi Arabia, the UAE, and the Channel Islands, and an e-commerce channel serving 130 countries.

    Pippa Stephens, retail analyst at GlobalData, said that while Mike Ashley has given Jack Wills a much-needed lifeline, she fears he already has far too much on his plate to make the ailing lifestyle brand a priority and implement a successful turnaround strategy.

    “While Ashley recently admitted that he regrets purchasing House of Fraser, significant time and money are still required to resurrect the failing department store retailer, making it the focus if Ashley is to retain his self-penned ‘savior of the high street’ label,” said Stephens.

    “Jack Wills has lost relevance in the UK clothing market as its heavily branded, preppy products no longer appeal to 16-24-year-olds who now prefer more edgy, aspirational brands. Consistent discounting has devalued its full-price proposition, while its stores have lost their appeal and uniqueness.

    “Jack Wills needs to be substantially revamped if it is to revive its desirability, win back shoppers and establish a new loyal customer base. Without sufficient investment in modernizing ranges and improving the in-store experience, we expect it to continue to struggle in today’s competitive youth segment.”

    Private-equity owner BlueGem began canvassing for prospective buyers for Jack Wills early last month after engaging advisory firm KPMG to prepare a review of the business’ prospects. According to companies office records, Jack Wills lost £29.3 million for the year to January 31 last year, and a £28 million cash injection from BlueGem in January this year has been almost exhausted.

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  • Blow for House of Fraser as Chinese firm drops plan to invest

    Blow for House of Fraser as Chinese firm drops plan to invest

    C.banner International has dropped its House of Fraser rescue plan, dealing what some observers in the UK are describing as a potentially fatal blow.

    Hong Kong-listed C.banner, which is the parent of toy retailer Hamleys, had undertaken to invest £150 million into House of Fraser assuming control of the business.

    In June, the deal appeared to be confirmed after creditors of House of Fraser agreed to a Company Voluntary Agreement in which 31 stores would close in the UK and Ireland and 6000 jobs cut. After the downsizing, House of Fraser would have just 28 stores in the UK and Ireland. Creditor approval of the CVA was a pre-condition of C.banner’s investment.

    However in a statement issued to the Hong Kong stock exchange, C.banner has backed out.

    “In view of the fact that the recent market prices of the shares as quoted on the stock exchange have significantly dropped to a level which is far below the placing price range of HK$2.40 to $3.00 per placing share, the company and the placing agent are of the opinion that the placing has been rendered impracticable and inadvisable, and therefore no longer intend to proceed with the placing.”

    C.banner’s share price has fallen to $0.71 since June 1, when it announced the plan.

    Furthermore, C.banner has issued a profit warning, predicting a loss of RMB20 million in the six months to June, compared with a RMB39 million profit for the same period last year.

    Talks with new suitors

    Meanwhile, House of Fraser is now in negotiations with other parties, including Mike Ashley, the owner of Sports Direct, over a rescue bail-out – it needs £50 million rapidly to avoid collapse.

    As reported, the department store group is struggling to pay a quarterly rent bull of nearly £25 million due in late September and to fund the purchase of millions of pounds of stock for the peak Christmas trading period.

    And, subsequent to creditor approval of the CVA, some of the company’s landlords have launched a legal challenge against the planned store closures and rent reductions. While all creditors had a vote on adopting the CVA, it only required a majority of 75 per cent to be carried. The landlords were on the losing side of that vote.

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  • JD Sports in Deal to Acquire Finish Line

    JD Sports in Deal to Acquire Finish Line

    British retailer JD Sports Fashion is to pay US$558 million to acquire America’s Finish Line, one of the country’s largest upmarket sportswear chains.

    Finish Line, whose sales reached $1.84 billion in the year to March 3, is listed on the Nasdaq. It sells multi-brand apparel and accessories from 556 branded retail stores across 44 states and Puerto Rico, and online.

    Besides its own stores, Finish Line sells athletic shoes through 375 branded and 188 unbranded concessions within Macy’s stores and on the company’s website.

    JD Sports, which recently overtook UK rival Sports Direct as the nation’s largest sportswear retailer by market value, has previously expanded in to South Korea, Spain and France, with other Asian markets on the horizon. This is its first foray into the US market.

    “This is a landmark day for JD and will be transformational for the business. It immediately offers a major presence in the US, a clear next step to further increase our global scale,” said executive chairman Peter Cowgill in a statement.

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  • Sportsdirect.com Malaysia expands

    Sportsdirect.com Malaysia expands

    Sportsdirect.com, the leading UK sporting goods retailer, opened its 13th Malaysian store this week.

    The new outlet is in the Oceanus Waterfront Mall in Kota Kinabalu.

    Sportsdirect.com Malaysia plans a further four new stores by November. The foray marks UK-headquartered Sportsdirect.com’s first direct retail investment in Asia, a partnership with Malaysian-owned MST Golf Group of companies, an established regional golf retailer.

    “We are delighted to be opening our next superstore at the Oceanus and to bring a variety of authentic sports brands and categories to Sabah consumers at unbeatable value,” said Sportsdirect.com Malaysia MD Paul Gibbons in a statement.

    At 10,000 sqft, the new store is the largest sports store in Sabah. Sportsdirect.com is a well-known sports shopping destination in UK and Europe with over 900 stores and annual sales revenue of RM15 billion.

    Sportsdirect.com offers a wide selection of global brands in sportswear, footwear and sports equipment, including leading brands such as Nike, Adidas, Puma, Yonex, Li-Ning, Speedo and Arena, alongside its exclusive portfolio of 28 internationally recognised sport, fashion and lifestyle brands including Dunlop, Slazenger, Everlast, Lonsdale and Karrimor.

    Malaysia customers experience the same look, feel and flow of the most modern UK stores, providing the widest and most in-depth range of equipment by brand, technical innovation and value.

    The stores are zoned by key sports categories: the Boot Room for football; Sheruns Heruns for running; Fitness Zone for fitness, cross training, gym equipment, weights, boxing, martial arts and yoga; Racket Centre for badminton, squash and tennis; Swim Shop for pool, beach, water sports and activities; Field & Trek for outdoor and winter, hiking, tracking and camping; the Games Room for table games, darts, table tennis; Big Action for bikes and skates; Men Sports Lifestyle; Women Sports Lifestyle and Kids Sports Lifestyle.

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