Sports Direct buys two US chains in £78m debt deal
PUBLISHED: 12:19 21 April 2017 | UPDATED: 12:19 21 April 2017
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.