Frasers Group has exercised its rights to withdraw from its transaction to acquire SportScheck after the company filed for insolvency.
Frasers Group explained that while it is disappointed by the insolvency of SportScheck, “it continues to believe that SportScheck is an attractive asset in one of Europe’s most important markets for Sports and it intends to work with the appointed preliminary insolvency administrator of SportScheck with a view to acquiring the SportScheck business/assets out of administration”.
However, things changed when SportScheck, owned by Signa Retail Department Store Holding, joined the ranks of companies seeking protection from insolvency.
The announcement of SportScheck’s insolvency was due to its parent company, Signa Retail Department, filing for insolvency with the commercial court in Vienna.
Frasers Group hoped SportScheck would benefit from its Elevation Strategy, which includes investments in concept stores, digital capabilities and strengthened brand relationships. Frasers Group also believed the retailer could use its Sports Direct brand’s strategic partnerships with global sports brands such as NIKE and Adidas to assist in its international expansion strategy.
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Frasers Group increases Boohoo stake to over 17%
Documents submitted to the London Stock Exchange show that Frasers Group has increased its stake in Boohoo from 16.5% to 17.2%.
The Sports Direct owner has been gradually building its stake in Boohoo and since October has been its largest shareholder.
In June, Frasers Group initiated its involvement with Boohoo by securing a 5% stake. The rationale behind this move was that it saw potential synergies between Boohoo and Frasers Group’s brands, namely I Saw It First and Missguided, with hopes of taking part in collaborative ventures in future.
Frasers has acquired stakes in a number of retailers, and Boohoo is just one of them. In June, the company disclosed that it had acquired an 8.9% stake in electrical retailer Currys. It has also increased its holding in online electrical firm AO World and now owns over 20% of fast fashion online retailer ASOS.