Wed, 24 Jun 2020 | BUSINESS SALE
JD Sports has bought back retail chain Go Outdoors after placing it into administration earlier in the week, which we reported on here. The company claims that the deal, which is said to be structured as a pre-pack administration sale, will preserve “as many jobs as possible” and honours existing agreements with suppliers.
Michael Magnay and Daniel Butters of Deloitte had been appointed as administrators for Go Outdoors, but it has now been reacquired by JD Sports, with the fee claimed to be £56.5 million. JD Sports says the company has a potential future within its group if it is “fundamentally restructured”.
The majority of staff will transfer as part of the pre-pack deal and the aim will be for most stores to continue trading, JD Sports says. All stores will initially remain open for a year, during which time JD Sports will attempt to negotiate more favourable terms with landlords.
It is unknown whether JD Sports determined the minimum deal price for Go Outdoors in relation to potential bids from competitors.
According to JD Sports executive chairman Peter Cowgill: "As a consequence of COVID-19, Go Outdoors was no longer viable as previously structured and would have absorbed capital at an unsustainable rate for the foreseeable future.”
"Having investigated all available options for the business, we firmly believe that this restructuring will provide Go Outdoors with a platform from which it can progress whilst remaining a member of the group.”
Michael Magnay, joint administrator, commented: "Like many high street retailers, Go Outdoors Ltd has been seeking to address a number of underlying business challenges in the current UK retail environment, which have been exacerbated by the impact of COVID-19.”
"This successful sale will provide Go Outdoors with an opportunity to restructure its business to secure its future for the long term.”
Find businesses for sale here.
If you are looking for an exit, we can help!
Well established and highly profitable used car sales business. Situated on busy main road in South Essex. Twelve month income to year end 2021 c. £2m. Excellent reputation within the industry both locally and further afield. Car Gurus ‘Top Rated Dea...
LEASEHOLD
A well-established online business with a significant turnover, and great opportunity for further growth and development.
LEASEHOLD
Genuine well established online retailer and brand founded by the current owner in 2010. The brand is fully protected by IP rights in the UK and top level domain. Huge scope for expansion of existing bespoke website with use of social medial, SEO, Go...
WEB-BASED
|
27
|
|
Oct
|
HomeServe acquires emergency home repairs firm at 13.6x EBITDA | BUSINESS SALE
Home repairs and improvements firm HomeServe has completed t...
|
26
|
|
Oct
|
Lancashire pub with listed windmill up for sale for £325k | COMMERCIAL PROPERTY
The Windmill Tavern in the Lancashire village of Clifton, wh...
|
26
|
|
Oct
|
Over half of UK firms struggling with “toxic debt” | BUSINESS NEWS
According to the latest research by restructuring firm Begbi...
Sign up to receive our acquisition alert emails to get your FREE guide
|
01
|
|
Dec
|
Arcadia collapses into administration | ADMINISTRATION
Sir Philip Green’s Arcadia, the group behind retailers...
|
15
|
|
Oct
|
Gourmet Burger Kitchen acquired by Boparan in deal that sees 26 sites close | BUSINESS SALE
Gourmet Burger Kitchen has been acquired by Boparan Restaura...
|
23
|
|
Sep
|
Cartwright Group enters administration, but fleet and rental arms are sold | ADMINISTRATION
Commercial trailer manufacturer and rentals firm Cartwright ...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources