Sports Direct International has received approval from the Delaware Bankruptcy Court to acquire certain assets of Eastern Outfitters LLC, comprising the businesses of Bob's Stores and Eastern Mountain Sports.
The businesses to be acquired included (following closures) about 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 total cost to Sports Direct amounted to $101m cash, all of which was either 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 had 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," said Sports Direct.