Frasers Group’s German takeover in peril as cash crisis bites

Shirebrook-based Frasers Group’s proposed venture into the German market could collapse after it emerged the company it is buying is on the verge of administration.

SportScheck, which has over 75 years of experience in sports retail, 34 stores in city locations across Germany, revenue of approximately €350m and a customer base of over 13 million visitors per year, could be plunged into insolvency by its Austrian investment group Signa, which is struggling with a finance crisis.

The deal has stalled, despite it being agreed in October, as, under the agreement, Signa would fund SportScheck until the deal had been completed – thought to be early in the new year – something it may now not be able to do, according to reports in The Telegraph.

Michael Murray, CEO of Frasers Group, said when announcing the deal: “Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in EMEA – and we are delighted to do this with the full support of major global brand partners, Adidas and Nike. Growing and expanding our Sports business is a key focus area in becoming an international retail business. The German market represents a huge opportunity for us, and we look forward to bringing our experience, resources and relationships to strengthen the SportScheck business.”

Frasers Group is now thought to be assessing its options.