×
84 552
Fashion Jobs
L'OREAL GROUP
Ecommerce Director
Permanent · Saint Petersburg
COTY
Director, Finance - cb Sales
Permanent · New York
OLD NAVY
Site Merchandising Manager - Old Navy Online
Permanent · San Francisco
NIKE
Senior Manager - Finance Engineering & Automation
Permanent · Beaverton
JCPENNEY
Email Marketing Senior Manager
Permanent · Plano
LEVI'S
Global Raw Material Planner
Permanent · San Francisco
NORDSTROM
Asset Protection - Agent - Tacoma Mall
Permanent · Tacoma
SHISEIDO
Sales & Training Executive, San Francisco - Nars
Permanent · San Francisco
ROSS STORES
Store Protection Specialist
Permanent · Grand Prairie
PUMA
av Specialist, IT Service Desk
Permanent · Somerville
PUMA
Key Account Manager, Sporting Goods
Permanent · Somerville
BLOOMINGDALE'S
Asset Protection Outlet Associate, Part Time: Outlets at Orange
Permanent · Orange
TAPESTRY
Senior Manager, Human Resources (People Partner)
Permanent · New York
TAPESTRY
Analyst, Trade Compliance
Permanent · Jacksonville
ESTÉE LAUDER
Clinique Consultant - 37.5 Hrs - Macys - South Portland, me
Permanent · South Portland
ESTÉE LAUDER
Associate Consultant - Clinique - Part Time - Macys Tysons Corner - Mclean, va
Permanent · McLean
ESTÉE LAUDER
Business Manager - Clinique - Full Time - Dillards - Temple, tx
Permanent · Temple
ABERCROMBIE AND FITCH CO.
IT Service Desk Specialist
Permanent · Columbus
ATHLETA
Senior Analyst, Divisional & Control Finance, Athleta
Permanent · San Francisco
GAP
Asset Protection Service Representative - Jersey Gardens
Permanent · Elizabeth
OLD NAVY
Assistant General Manager ne - Shop @ Perry Crossng
Permanent · Plainfield
OLD NAVY
General Manager - Freehold
Permanent · Freehold Township
By
Reuters
Published
Aug 7, 2009
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Sports Direct faces competition probe on JJB buys

By
Reuters
Published
Aug 7, 2009

LONDON, Aug 7 (Reuters) - Sports Direct (SPD.L), Britain's biggest sporting goods retailer, faces an investigation by regulators into its purchase of 31 stores from rival JJB Sports (JJB.L) after failing to find a buyer for five of the shops.


The new Celtic away strip at Sports Direct - Photo: www.sportsdirect.com

Shares in Sports Direct, which is controlled by Mike Ashley, the billionaire owner of Newcastle United soccer club, fell 4 percent in early Friday (7 August) trade on concerns it might be forced to keep the five shops empty while still paying rent.

Britain's consumer affairs watchdog, the Office of Fair Trading (OFT), had called on Sports Direct to sell the five stores because of concerns competition would be restricted in their localities.

The OFT said on Friday 7 August that Sports Direct had not managed to find a buyer and had made no significant progress towards a deal.

As a result, it had referred Sports Direct's purchase of all 31 JJB stores, which were carried out over a two-year period, for further investigation by the Competition Commission.

"Although the exact details of the stores under the spotlight is unclear, we believe it unlikely that the annual liability to Sports Direct from unmitigated occupancy costs would exceed 1.5 million pounds ($2.5 million)," Singer analyst Matthew McEachran said in a research note.

"Nonetheless, this news could weigh on the shares which have performed well over the last quarter (up 32 percent)."

At 0752 GMT, Sports Direct shares had recovered the bulk of initial losses to trade down 1.1 percent at 90 pence, valuing the business at about 525 million pounds. JJB shares, initially unchanged, fell 2 percent to 25.25 pence.

Singer's McEachran said there was also the possibility of more drastic action from the Competition Commission that could affect all 31 stores.

He added it was unclear whether the leases might revert to JJB, which is downsizing after coming close to administration earlier this year.

Sports Direct, which owns Sports World and Lillywhites stores as well as brands such as Slazenger, Lonsdale and Dunlop, declined to comment. JJB had no immediate comment.

(Reporting by Mark Potter; editing by John Stonestreet)

© Thomson Reuters 2022 All rights reserved.