Home shopping group Findel has decided not to sell its sports retail business Kitbag following a strategic review.
- Findel says keeping Kitbag is in best interests of shareholders
- It plans to continue to develop Kitbag within the group
- Year-end sales at Kitbag show strong recovery
The Findel board concluded it would be in the best interests of shareholders to continue to develop Kitbag within the group.
Further details of the business’s plans for Kitbag, as well as its two larger retailers Express Gifts and Findel Education, will be revealed on June 18 when it unveils its full-year results.
Findel revealed in October last year that it was launching a strategic review of its sports retailing business and was considering selling the business.
But the Kitbag division has since reported a “strong recovery”, driven by a record Christmas trading period. Sales for the year ending March 27 rose 10.5%, which “substantially reduced” its operating loss.
David Sugden, Findel executive chairman, said: “Having carefully considered all options, it was clear to the board that it is in the best interests of all stakeholders to continue Kitbag’s development as part of the group.
“Kitbag has delivered a substantial recovery in its underlying operations and contract base after the renegotiation of legacy contracts, and has started to capitalise on the significant international growth opportunities open to the business.
“We are confident that Kitbag will continue to build on the recovery to date.”