Fashion Businesses bought by Sports Direct

 

Fashion Businesses bought by Sports Direct

 

The sports retailer Sports Direct has this week bought 80 percent shares in two of the retail tycoon Sir Tom Hunter’s largest businesses, and it is suggested that they beat rivals JD Sports to obtain this deal.

 

The businesses involved, USC and Cruise Clothing, specialise in designer brands, which Sports Direct is aiming to use to help them gain a foothold in the luxury clothing market as part of their strategy to move more upmarket.

 

Sports Direct reportedly paid £7 million to take control of the two companies in a deal which was finalised on 6^th July. Cruise Clothing generates an annual turnover of about £20 million and has 10 stores open in the UK; USC took £70 million in sales since January, and has 38 UK stores currently, with two new stores planned to open later this year,

 

In order to help develop the businesses, Sports Direct owner Mike Ashley, who is also the owner of Newcastle United football club, will be providing up to £20 million.

 

Sir Tom Hunter will remain chairman to both companies in order to offer advice to the newly established premium section of the sports shop, and will also retain a 20% stake in both the businesses. He says that, “This deal will transform the prospects for both USC and Cruise and our employees at a time of extraordinary turbulence in the High Street.”

 

The chief executive of Sports Direct, Dave Forsey, confirms that, “While USC and Cruise will remain independent of Sports Direct, we will support the businesses with our operational expertise.”