JD Sports jettisons 15 non-core fashion brands in £47.5m deal with Frasers Group
Bury-based sports athleisure retailer, JD Sports Fashion, is to sell 15 non-core fashion brands to Frasers Group for up to £47.5m in cash, it revealed this afternoon (December 16).
It follows a strategic review of the group by chief executive, Régis Schultz, aimed at significantly simplifying its branded fashion offer.
JD Sports said completion on the acquisition of shares in eight of the divested businesses and on the acquisition of all of the debt owing to JD by the divested businesses happened immediately on exchange, with completion on the acquisition of shares in the remaining seven businesses expected in early 2023.
The divestment of the businesses will allow the group to focus more fully on the opportunities across the rest of the business, in particular the international and digital expansion of the group’s core premium sports fashion fascias, said JD.
Régis Schultz said: “JD is rightly recognised for its laser focus on the customer and we are convinced that the most significant opportunities lie in the continued international development of the group’s global sports fashion businesses.
“We are pleased to have agreed the sale of these attractive, but non-core, brands and I would like to express my sincere thanks to all colleagues at the businesses which form part of the transaction for their hard work and contribution to the group over the years.”
This sale will result in the group recognising a non-cash exceptional charge in its annual accounts for the period to January 28, 2023, of approximately £100m.
The businesses included in the divestment are: Base Childrenswear, Kids Cavern, Pretty Green, Prevu Studio, Nicholas Deakins, Missy Empire, Clothingsites (incl Brown Bag Clothing trading website), and Watch Shop, as well as Cricket, Giulio, Choice, Tessuti (incl Xile), Scotts, Rascal Clothing, and Topgrade Sportswear (incl Get The Label trading website), in which the sale of shares has not yet completed.
The Manchester office of Addleshaw Goddard advised JD Sports Fashion on its sale of non-core fashion brands.
The AG team was led by partner Roger Hart and included Samantha Wright, Dan Sweeney, Greg Carr, Charlotte Andrews, Elizabeth Oakley, Nadine Waters and David Auty.