Frasers Group has rescued Dave Whelan’s DW Sports from administration in a £37m deal.

Frasers has acquired the assets of DW Sports’ gym and fitness business, including its stock.

However, the deal does not include the DW name or intellectual property.   

The acquisition, which has saved 922 jobs, marks the latest purchase for Mike Ashley’s group as it grows its presence on high streets across the UK.

It already owns businesses including House of Fraser, Flannels, Evans Cycles, and Jack Wills, in addition to the core Sports Direct chain that made Ashley his billions. 

The group changed its name to Frasers Group last year as it steps up its ‘elevation’ strategy to modernise stores and become more upmarket in its approach. 

Frasers said the acquisition of DW Sports “complements the existing gym and fitness club portfolio within the company’s group and is consistent with the group’s elevation strategy”.

It added: “Frasers Group looks forward to elevating the gym and fitness assets acquired pursuant to the transaction under the group’s existing iconic Everlast brand, and is also pleased to have saved a number of jobs.” 

In its latest accounts, covering the year to March 31, DW Sports made a loss of £20m but had gross assets of £195m.

The company operated 75 stores and 73 gyms across the UK, but revealed plans to close 25 of its shops last month after tumbling into administration. 

DW’s sister brand Fitness First is not impacted by the administration and sale.