Retail group flexes muscles with £30m bid for collapsed gym group
Mike Ashley’s Frasers Group has reportedly made a bid for DW Sports, the sports retail empire of his old rival Dave Whelan which collapsed earlier this month.
Frasers, formerly Sports Direct, is understood to have offered administrators more than £30m for DW Sports, which comprises 73 gyms and 75 stores.
The Wigan-based sports retailer and gym group entered administration earlier this month, a move which put 1700 jobs at risk.
The news is the latest in a string of High Street rescue deals by Ashley, who has snapped up retailers including Jack Wills, Evans Cycles and House of Fraser.
DW Sports Fitness was founded in March 2009 when former Wigan Athletic FC owner Dave Whelan purchased the 50 JJB Sports Fitness Clubs and the attached retail stores for £83.4m.
It is understood that administrators BDO are asking around £20m for DW Sports, the Sunday Times reported, but there is speculation that Whelan’s family could seek to buy back the business.
The Whelans also own Fitness First, which is not affected by the collapse.
If Ashley’s takeover of DW Sports is successful, it would add 880 stores at Frasers Group.
Frasers reported a 14% rise in half-year sales to £2bn last October. However, it delayed its annual results last week because auditors needed more time although an update to the stock market is expected within days.
