Retail giant will purchase debts and assets of bankrupt Eastern Outfitters after court approval
Companies: Frasers Group PLC
Retail giant Sports Direct appears to have secured a foothold in the lucrative US market by agreeing to acquire sporting retailer Eastern Outfitters in a $101m deal (c.£79m), it announced on Friday.
The move by Mr Ashley's sporting retail giant will see it acquire 50 new stores after buying the debts of Eastern Outfitters and lending the recently bankrupted firm money. The deal received approval from the Delaware Bankruptcy Court on Wednesday.
"The aggregate cost of the acquisition to Sports Direct amounts to $101m in cash, all of which has either been advanced by Sports Direct by way of debtor-in-possession and other loans to Eastern Outfitters LLC prior to, and as part of, the Chapter 11 process..."
Sports Direct said the move would give it a "footprint" in US bricks and mortar retail market and enable it to grow online sales across the region, too.
Last year, Bob's and Eastern Outfitters, the retail brand of Easter Outfitters, managed to rack up losses of $26m, while it reported assets of around $126m.
Shares in Sports Direct were down 1.4% early on Friday.
