JD Sports eyeing strategic distribution hub deal
Bury sports and athleisurewear retailer JD Sports is in the box seat to buy a key logistics hub following the demise of the Arcadia empire.
But it might have to pay up to £90m for the distribution centre in Daventry, Northants, according to Sky News.
Others said to be in the bidding frenzy include Manchester online fashion retailer Boohoo, Amazon and eBay.
But JD Sports is believed to have entered an exclusive stage of negotiations.
Last month Boohoo acquired the Dorothy Perkins, Wallis and Burton brands from Arcadia’s administrators in a cash deal worth £25.2m.
JD could pay between £60m and £90m for the distribution centre, according to analysts.
Interest from potential bidders reflects the importance of key logistics assets to online shopping groups following an unprecedented increase in e-tail activity since the coronavirus pandemic hit high street activity through government-imposed lockdowns.
It is understood that JD tried to buy the TopShop and TopMan brands as part of Arcadia’s administration, but lost out to ASOS.
Earlier last month JD Sports raised £464m through a share placing to swell its acquisition warchest.
Days beforehand it agreed to pay $495m in cash for US-based DTLR Villa, a sportswear retailer based in Baltimore, Maryland.
Established and agile retailers throughout the country are in the process of expanding and consolidating at the expense of the many losers in the retail shake-up, at a time when the sector has evolved by as much as 10 years in as many months.
In January this year Boohoo acquired the brand and website of high street chain Debenhams in a £55m cash deal after prolonged attempts to rescue the business failed.