Sports Direct has snapped up the wholesale division of World Design and Trade (WDT), owners of young fashion brands Firetrap and Full Circle, while the retail arm has been placed into administration.

Speculation had been mounting this week over the potential sale of Firetrap, with Sports Direct and JD Sports Fashion thought to be neck and neck to buy it.

As well as the wholesale division, Sports Direct has bought the brands’ concession and online businesses, but Firetrap’s remaining six stores closed today, after Ernst & Young LLP were appointed administrators of WDT.

WDT said in a statement that “Firetrap and Full Circle have been sold to SDSC Brands Limited, who are not only ambitious and supportive but are committed to the current brand strategy and will ensure the continued growth of the business through their investment in both brands and the team.”

Founder Asbed Momdjian, who has stepped down from the business, added: “A big thank you to everybody who supported the business and me over the years. I am fortunate to have had the opportunity to meet and work with so many talented individuals, brave and imaginative retailers and great manufacturers.”