Frasers Group’s plan to acquire SportScheck, one of the leading sports retailers in Germany, has hit a hurdle.
While the acquisition would enable Shirebrook-based Frasers to grow its presence in Germany, one of the biggest sports markets in Europe, the company it intends to buy is said to be on the brink of administration, according to Telegraph reports.
SportScheck has over 75 years of expertise in sports retail, with 34 stores in prime city locations across Germany, revenue of approximately €350m, and a loyal customer base of over 13 million visitors per year.
However it could now be put into insolvency by its financially struggling investment group Signa, which in the deal with Frasers had agreed to finance SportScheck until the transaction is completed – not expected until January – which it may no longer be able to do.
When announcing the acquisition Michael Murray, CEO of Frasers Group, said: “Acquiring the leading sporting goods retailer in Germany is a big step in our journey to becoming the number one sports retailer in EMEA – and we are delighted to do this with the full support of major global brand partners, Adidas and Nike.
“Growing and expanding our Sports business is a key focus area in becoming an international retail business. The German market represents a huge opportunity for us, and we look forward to bringing our experience, resources and relationships to strengthen the SportScheck business.”
