Sports Direct International plc to acquire certain assets of Eastern Outfitters LLC
Sports Direct International plc announces that, on 19 April 2017, it received the approval of the Delaware Bankruptcy Court to acquire certain assets of Eastern Outfitters LLC, comprising the businesses of Bob's Stores and Eastern Mountain Sports pursuant to a s.363 sale process, following the filing by Eastern Outfitters LLC (the parent company of Bob's Stores and Eastern Mountain Stores) under Chapter 11 in the US. The businesses to be acquired include (following closures) approximately 50 retail stores in the US under the Bob's Stores and Eastern Mountain Stores fascias selling predominantly sports and casual wear, and outdoor and camping equipment and clothing.
The aggregate cost of the acquisition to Sports Direct amounts to $101m in cash, all of which has either been advanced by Sports Direct by way of debtor-in-possession and other loans to Eastern Outfitters LLC prior to, and as part of, the Chapter 11 process, or been used by Sports Direct for the acquisition of Eastern Outfitters' debt, in each case in the period since 27 January 2017.
In the financial period to 28 January 2017, the businesses being acquired incurred a pre-tax net operating loss of $26m. As at 28 January 2017, the gross assets of the businesses being acquired was $126m.
The acquisition is expected to complete in the first half of May 2017 and will provide Sports Direct with a footprint in US bricks-and-mortar retail and a platform from which to grow US on-line sales.