Wed, 28 Dec 2016 | DIVISION SALE
Sports Direct is selling the rights to iconic British sportswear brand Dunlop as it sets its sights on becoming the “Selfridges of sports retail”.
The company says it has sold the label, known for its ‘Green Flash’ tennis trainers and tennis racquets, some of which were used by stars including John McEnroe, Steffi Graf and Martina Navratilova, to Japanese tyre company Sumitomo Rubber Industries for $137.5 million (£112 million).
It is understood that the sale is part of Sports Direct founder and chief executive Mike Ashley’s plan to push the company towards the luxury end of the high street on the back of complaints from some of its more upmarket suppliers.
Sumitomo, which already has a relationship with Dunlop having acquired its European tyre business back in the 1980s, makes tyres for passenger cars, rally cars and other vehicles, as well as sporting goods including balls, racquets, bags and shoes.
In a statement Sports Direct said the Dunlop sale was “in line” with its “stated aspiration to become the ‘Selfridges’ of sports retail including its renewed focus on its core UK business and the development of its relationships with third party brands”.
“Sports Direct's senior management team currently needs to prioritise the core UK businesses and relationships with third party brands and does not currently have the bandwidth to develop and manage international brands simultaneously.
“As such, Sports Direct intends to use the proceeds of sale from the transaction in its commitment to its third party brand relationships.”
According to the Financial Times, some of Sports Direct’s more upmarket suppliers, which could include Nike and Adidas, are concerned that their products are being sold alongside goods from ‘lower quality’ brands like Dunlop, Slazenger, Everlast and Lonsdale.
The deal, subject to merger clearance, is expected to close by the end of May next year.
Find retail businesses for sale.
The company has been a pioneering provider of retail EPOS software for over 25 years, with its proprietary software spanning both the retail and hospitality sectors, and a recent acquisition of cutting-edge hospitality solutions, this opportunity inc...
This well-established business offers a unique acquisition opportunity with its bespoke, high-quality wine-related accessories and strong market position in the UK and international B2B sectors. Its longstanding relationships with high-profile custom...
FREEHOLD
This business provides a unique opportunity to acquire a well-established company specialising in bespoke MFC cabinet products, benefiting from strong regional reputation and long-standing customer relationships across multiple sectors. With a skille...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.