Blog: Leonie BarrieA knock-out bid for Everlast

Leonie Barrie | 29 June 2007

Everlast’s decision to sell to the Hidary group at the beginning of this month attracted widespread criticism for being too low – even though it would have given its stockholders $26.50 for each share held in cash. Now, though, it seems some UK analysts feel Sports Direct – which has overtaken Hidary with a bid of that is 15% higher – is paying too a high price for what is effectively a stepping stone into the US.

Sports Direct is adamant that the deal will benefit its wholesale, licensing and retail businesses by adding yet another household sporting name to a stable that already includes Slazenger, Dunlop and Lonsdale. And of course it provides a ready-made opportunity to break into the lucrative American sportswear market without the time and cost of establishing its own distribution network.

But there’s also a strong argument that says it should get its own house in order before embarking on a spending spree. Sports Direct’s core business is under pressure since being floated on the market in February, with the value of its shares falling by 40%. Internal squabbles, a difficult relationship between the company’s founder billionaire Mike Ashley and the City, and the recent resignation of chairman David Richardson, all mean it could well be stretched to breaking point when this big and fast-moving acquisition gets underway.

Sports Direct unit pays $168m for Everlast


BLOG

just-style market research sale

Are you planning for the year ahead and beyond? Well this week we’re offering great deals on some of our market research......

BLOG

Gearing up for the holiday shopping season

The volume of US apparel imports saw an increase in October on the prior year as retailers geared up for the holiday shopping season. Bangladesh booked the second highest growth behind India, reversin...

BLOG

Innovations to boost sustainability

Hong Kong-based textile and apparel giant Esquel Group, the world's largest woven shirt maker, is pushing ahead with the pursuit of sustainable and holistic quality. ...

BLOG

Sign up to try new re:source apparel sourcing tool for free

The old saying "Good things come to those who wait" is certainly true for re:source, the new suite of data-driven sourcing tools being developed by the team here at just-style....

just-style homepage



Forgot your password?