Sports Direct builds stake in Umbro owner Iconix

SPORTS Direct, the country’s largest sports retailer, has taken what it describes as “strategic” stakes in two US-based companies.

It owns, through contracts for difference, 11.52% of the New York-based Iconix Brand Group – which owns the longstanding Umbro football brand – and 2.34% of retailer Dick’s Sporting Goods.

In a statement, the company founded by billionaire Mike Ashley said: “The main rationale for these stakes is to allow Sports Direct to hopefully build a relationship and develop commercial partnerships with the relevant parties.

“They also help the company to build relationships with key suppliers and brands.”

Umbro, which was founded in Wilmslow in 1924 and now has its HQ in Mancchester, was acquired by Iconix from Nike several years ago.

Dick’s Sporting Goods made an unsuccessful foray in the UK retail sector as it tried to rescue Wigan-based JJB Sports, which ultimately went into administration in October 2012.

The JJB brand and 20 of the best stores was acquired by Sports Direct.