Battle for control over Direct Golf as administrators teed up

HUDDERSFIELD-BASED golf retailer, Direct Golf UK, has reportedly called in the administrators after an ongoing battle for control with Mike Ashley’s Sports Direct.

According to The Telegraph, Direct Golf called in administrators from Begbies Traynor last Thursday.

Allegations have surfaced that that Ashley’s firm and Direct Golf founder and owner, John Andrew are in the midst of a fight for control of the firm.

Last year, Direct Golf, which has 20 stores, made a deal with Sports Direct in which the larger firm took a 25% stake in the company and funded the firm’s expansion plans.

Direct Golf was founded by PGA Professional Mr Andrew in 1991 and now employs around 180 people including head office and store colleagues.

At the time of the deal with Sports Direct in July 2014, he said: “Teaming up with Sports Direct is a fantastic opportunity for us and will give Direct Golf access to many new and attractive market opportunities.”

Now it seems that relationship has soured. Accusations have surfaced that Sport Direct has been “intimidating” the smaller firm, with Mr Andrew alleging that Sports Direct filed a winding up order on the firm, with the aim of doing a pre-pack administration with a practice of their own choosing rather than Begbies Traynor.

Mr Andrew alleges that he has also been removed as a director, and that the locks were changed at their Huddersfield head offices, forcing staff to leave the site.

Earlier this year, Direct Golf posted results for the year to 30 September 2014, showing a slump in revenues from £23.9m in 2013 to £20.8m. Pretax profits had halved from £639,091 to £329,000.

However, a recent update stated that the firm was doing better, with turnover for the year up 25% so far.