Sunny

Sunny

max temp: 23°C

min temp: 10°C

Search

Sports Direct buys two US chains in £78m debt deal

PUBLISHED: 12:19 21 April 2017 | UPDATED: 12:19 21 April 2017

Sports Direct founder Mike Ashley outside the Sports Direct headquarters in Shirebrook, Derbyshire. Photo: Joe Giddens/PA Wire

Sports Direct founder Mike Ashley outside the Sports Direct headquarters in Shirebrook, Derbyshire. Photo: Joe Giddens/PA Wire

Mike Ashley’s Sports Direct has seized control of US retailers Bob’s Stores and Eastern Mountain Sports in a 101 million US dollars (£78 million) debt deal.

The billionaire tycoon has acquired the chains by buying up the debts of their parent firm Eastern Outfitters, which filed for Chapter 11 bankruptcy protection in February.

The deal will see Mr Ashley take charge of around 50 retail stores in the US under the Bob’s Stores and Eastern Mountain Sports fascias, which sell clothing, sportswear and camping equipment.

Sports Direct said the acquisition will provide it with a “footprint in US bricks-and-mortar retail and a platform from which to grow US online sales”.

Eastern Outfitters booked a pre-tax net operating loss of 26 million US dollars (£20 million) in the year to January 28, although the gross assets of the businesses being acquired stands at 126 million US dollars (£98 million).

Mr Ashley, who also owns Newcastle United FC, has courted controversy recently, coming under fire for presiding over “Victorian” working conditions at Sports Direct’s warehouse in Shirebrook, Derbyshire.

The retailer has since moved to elect an employee to attend board meetings.

Search hundreds of local jobs at Jobs24

Indian IT company Tech Mahindra invests in new Makers Lab at Adastral Park, Suffolk

Debenhams in trouble - profits plunge nearly 85% after battering from the Beast from the East

Popular ice cream shop I Scream in Ipswich has just moved to new premises and is moving into takeaway savouries soon too.

Ipswich accountant Kelly-Anne Byres is a finalist in a national awards scheme

Industry leaders attend business event at One sixth form. organised by students.

Management Jobs

Show Job Lists

Most read

Topic pages

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter
MyDate24 MyPhotos24