Discount clothing chain Sports Direct has blamed suppliers to Blacks Leisure for scuppering a full takeover of the struggling outdoors equipment retailer.
Sports Direct bought the trading assets of Blacks this week through an administration process but couldn't complete a formal share takeover because it says suppliers, in particular The North Face, "were not prepared to respond to our approaches".
In other words, suppliers might simply have stopped selling to Blacks if it had been acquired by Sports Direct.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The firm, famously founded by Mike Ashley, the owner of Newcastle United FC, now says it wants the Office of Fair Trading to "look closely at both the Outdoor and Sports retail markets to ensure they operate in the best interests of the consumer."
Sports Direct already owned a 21% stake in Blacks and has had to write off £52.6m as that stake has become worthless but says its earnings guidance for the full year will be unaffected.
Shares in Sports Direct have risen 39% in the last 12 months.
BS
