Sports Direct revealed it has written off £52.6m in Blacks following rival JD’s acquisition of the retailer out of administration yesterday, and has urged the OFT to “look closely” at the outdoor and sports retail market.
Sports Direct, which was Blacks’ largest shareholder, said the decision to sell the outdoor business via a pre-pack administration was “disappointing” particularly in light of the dismissal of its own bid to buy the retailer at 62p a share in 2010.
Sports Direct said it had written off £52.6m investment in Blacks shares, although reinforced it would not affect its guidance for its own business.
The sportswear retailer said its own bid failed because of “supplier relationship issues”, in particular with North Face which blocked Sports Direct’s previous bid to buy Blacks.
Sports Direct said: “North Face were not prepared to respond to our approaches…We could not justify a higher price for the Blacks business.”
It added: “Going forward we would urge the OFT to look closely at both the outdoor and sports retail markets to ensure they operate in the best interests of the consumer.”
JD, which acquired Blacks out of administration yesterday for £20m, is majority-owned by Pentland, owner of brands including Berghaus.