Frasers eyes £17.5m rescue deal for struggling Norwegian retailer

Shirebrook-based Frasers Group is lining up a £17.5m bid for Norwegian-based sports retail giant XXL Sport & Villmark.

Frasers is the second largest shareholder in XXL, holding a 25.7% stake. XXL operates 85 outlets in Norway, Finland and Sweden – however, it is currently struggling.

XXL is suffering from an inability to access adequate levels of appropriate stock, which is damaging sales volumes. Frasers says it is willing to address XXL’s stock shortage and provide XXL with products and brands that will “make XXL’s retail offering more attractive” and ease XXL’s cash requirements.

A statement from Frasers said: “As we understand XXL is short of sufficient funds to pay its suppliers, Frasers has a solution for this cash shortage which also helps with the stock shortage. Subject to satisfactory due diligence and completion of the offer, Frasers is willing to consign up to NOK 500 million of stock on a delayed payment basis whereby XXL will not be required to repay Frasers until the stock is sold.”

Michael Murray, CEO of Frasers, said: “Our strategic vision and industry experience position us uniquely to help XXL navigate its current challenges. We are committed to ensuring that XXL reaches its full potential.”