Sports Direct to sell Dunlop brand
Sports Direct has entered into an agreement to sell its rights to the Dunlop brand and related wholesale and licensing businesses to Sumitomo Rubber Industries for US$137.5 million.
Currently operating in the UK, Europe, Asia, the USA and Canada, Dunlop’s revenue in the year to 24 April was £42.64 million while pre-tax profit was £4.06 million.
As part of the transaction, SRI will grant Sports Direct a royalty free licence to continue to use the Dunlop brand for premium workwear and safety wear for Sports Direct's own retail purposes although SRI will have the option to acquire these rights in the future. The parties will also enter into “certain other commercial arrangements” in relation to the supply of products to Sports Direct's core business.
Sports Direct said the sale of the Dunlop business is in line with its aspiration to become the "Selfridges" of sports retail.
In a statement the company added: “Sports Direct's senior management team currently needs to prioritise the core UK businesses and relationships with third party brands and does not currently have the bandwidth to develop and manage international brands simultaneously. As such, Sports Direct intends to use the proceeds of sale from the Transaction in its commitment to its third party brand relationships.”
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