Partner Article

Sports Direct drops Blacks interest

Sports Direct last night dropped plans to make a takeover offer for Blacks Leisure amid concerns that suppliers would pull their goods out of the outdoor firm’s stores if the deal went ahead.

Mike Ashley’s sportswear firm, which is Blacks’ biggest shareholder, said it had considered increasing its £26m offer for the firm but its bid plans were scuppered by a lack of information about suppliers’ willingness to deal with a Sports Direct-owned Blacks.

It said it had asked Blacks for details of any expressions of intent from suppliers, but the firm had “neither provided this information nor denied its existence”.

“Without clarification in relation to this issue, Sports Direct has been unable to finalise its views on the value of any potential offer,” the firm said.

“Accordingly, Sports Direct has determined that it would not be in its shareholders’ interests to make an offer for Blacks at this time.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .