British Retailer JD Sports Fashion Plc is “significantly simplifying” its branded fashion offer by divesting 15 UK-based non-core fashion businesses to Frasers Group Plc for an aggregate cash consideration of up to £47.5 million ($57.7 million).
Completion on the acquisition of shares in eight of the divested businesses and on the acquisition of all of the debt owing to JD by the divested businesses took place immediately on exchange with completion on the acquisition of shares in the remaining seven businesses expected in early 2023.
The deal saw eight brands, including Base Childrenswear, Clothingsites (including Brown Bag Clothing), Kids Cavern, Missy Empire, Nicholas Deakins, Pretty Green, Prevu Studio and Watch Shop, transfer ownership on Friday. Completion of the remaining seven brands—Choice, Cricket, Giulio, Rascal Clothing, Tessuti (including Xile), Scotts, and Topgrade Sportswear (including Get The Label)—is expected in early 2023.
JD said the divestment of these businesses would allow the retailer to focus on the opportunities in the rest of its business, particularly the international and digital expansion of JD’s core premium sports fashion fascias.
This divestment will result in the company recognizing a non-cash exceptional charge in its annual accounts for the period ending January 28, 2023 of approximately £100 million.
“JD is rightly recognized for its laser focus on the customer, and we are convinced that the most significant opportunities lie in the continued international development of the Group’s global sports fashion businesses,” noted Régis Schultz, CEO, JD Sports. “We are pleased to have agreed to the sale of these attractive, but non-core, brands and I would like to express our sincere thanks to all colleagues at the businesses which form part of the transaction for their hard work and contribution to the Group over the years.”
Source : SGB Media