Frasers Group pulls out of deal to acquire SportScheck
Frasers Group has pulled out of a deal to buy Germany’s SportScheck from Signa Holding.
The owner of Sports Direct announced back in October that it was to acquire the business to enable it to grow its presence in one of the biggest sports markets in Europe.
However, Frasers Group has now withdrawn from the transaction due to SportScheck filing for insolvency. A similar bankruptcy filing has been made by SportScheck’s parent company, Signa.
Frasers Group is now hoping to buy the retailer’s business or assets out of administration.
In a statement, the group said: “While Frasers is disappointed by the insolvency of SportScheck, it continues to believe that SportScheck is an attractive asset in one of Europe’s most important markets for Sports and it intends to work with the appointed preliminary insolvency administrator of SportScheck with a view to acquiring the SportScheck business/assets out of administration. Frasers remains committed to our ambition to become the leading sports retailer in EMEA.”
SportScheck operates 34 stores in prime city locations across Germany and has annual revenues of approximately €350 million.