Sports Direct International (SDI) is among the parties that have reportedly shown interest in acquiring BHS, a British retailer with 164 stores specializing in clothing and household items, which went into administration (a form of bankruptcy) earlier this month. Talks held with Mike Ashley, majority shareholder of SDI, fell through just before the collapse of BHS, but the sports retailer apparently remains part of the discussions. The BHS debacle has caused much agitation in the U.K., due to the size and identity of this well-known retailer – as well as the events leading up to its collapse, which have triggered two parliamentary inquiries. BHS was sold for just £1 in March 2015 by Arcadia, the retail group owned by Philip Green, to a consortium called Retail Acquisitions and headed by a former race driver. SDI has also been linked with interest in Austin Reed, another failed British retailer. The sports retailer previously had an interest in House of Fraser but failed to secure a buy. SDI still has a put option with Goldman Sachs International relating to a stake of 10.5 percent in Debenhams, another British department store chain, which it sealed in January 2015 and extended last week [assuming publication May 17]. The number of shares underlying the put option agreement and the agreed exercise price remain unchanged, but the maturity period of the put option has been extended for exactly one year. SDI reiterated its intention to be a supportive stakeholder in Debenhams. The sports retailer has been setting up concessions in Debenhams department stores.

Topics