John David Sports, which operates the JD Sports chain, has taken over struggling competitor Allsports for £18 million.

Allsports had been the fourth-biggest chain in the UK until it entered into administration last month due to considerable sales slumps and a price battle between sportswear chains.

1,300 employees have since been made redundant from the company, while 92 underperforming locations have been closed.

JD will take on Allsports' debt, which is believed to total £18m, and will continue to operate the stores under the Allsports name.

JD Sports executive chairman Peter Cowgill said: "We believe that, since the disposal of the under-performing stores, the remaining Allsports stores offer an exciting opportunity to expand the offering of JD to our customers".

John David earlier this month reported a 7.6 per cent sales drop in same-store sales since July, blaming poor consumer spending and internal problems.