Tue, 25 Nov 2014 | BUSINESS SALE
JD Sports has set in motion a sell off of its flagging fashion retailer Bank to Hilco Capital.
The news emerges just over a week since JD Sports asked landlords to reduce the rents for about a quarter of Banks’ outlets, and had even been considering an insolvency procedure.
Executive chairman Peter Cowgill said at the time that about 20 Bank stores were loss-making and that they were aiming to step around insolvency by discussing rate reductions with the landlords.
JD Sports, which itself is performing admirably with sales exceeding £1.25 million for 2013, bought Bank Stores in December 2007 for about £18 million. The retailer sells fashion brands including Adidas Originals, Henleys, Firetrap, Vans, Lipsy and Alu.
Bank posted operating losses of £8.1 million for the year ending 1 February 2014.
In discussing the sale Mr Cowgill said: "We have decided that we must prioritise future investment in the sports fascias and consequently we believe that the sale of Bank is in the best interests of the group. We shall continue to support the broadest possible range of fashion brands within the group."
It is anticipated the disposal will ease pressure on JD Sports and will mean a “substantial recovery” of its intercompany loan.
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