Serial retail entrepreneur Mike Ashley has made a £30m bid for collapsed sports and gym group DW Sports, reports claim.
The rival sports retailer, which operated 73 gyms and 75 retail sites, called in administrators at the start of the month, announcing it would be winding down its retail business, putting 1,700 jobs at risk.
The directors blamed a “challenging” quarter, warning of dozens of closures with immediate effect, prompting closing-down sales which have now started at its 50 remaining stores.
Chief executive Martin Long said: “As a consequence of Covid-19, we found ourselves in a position where we were mandated by Government to close down both our retail store portfolio and our gym chain in its entirety for a protracted period, leaving us with a high fixed-cost base and zero income.
“Like many other retail businesses, the consequences of this extremely challenging operating market have created inevitable profitability issues for DW Sports.
“The decision to appoint administrators has not been taken lightly but will give us the best chance to protect viable parts of the business, return them to profitability, and secure as many jobs as possible.”
Fitness First, which is a sister company of DW, will continue to operate as a separate company and its national 43 clubs will be unaffected by the administration.
NUFC owner Mike Ashley’s Frasers Group has reportedly placed a bid of more than £30m for DW Sports, which could significantly increase his current 880-strong shop portfolio.
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The entrepreneur is known for acquiring retailers during times of retail crisis, having already acquired the likes of Jack Wills, Evans Cycles and House of Fraser.
It has been reported that administrators at BDO are wanting around £20m, but there has been speculation that Mr Whelan’s family may seek to buy back the business.
Frasers Group is also said to be making a bid to buy 30 Debenhams stores, as the department store chain looks for ways to exit its administration - with plans said to include a possible sale or even liquidation, a move that could put 14,000 jobs at risk.
Meanwhile, Frasers Group is expected to finally release full year results this week, having pushed back the presentation last week, saying its auditors needed more time.