JD Sports Fashion has entered exclusive talks to sell its Footasylum chain after a costly month-long battle with UK competition regulators.
Sky News has learned that the Bury-based FTSE 100 retailer is trying to negotiate a sale of Footasylum to Aurelius Group, a private equity firm, despite growing difficulties in raising finance for corporate transactions.
A source close to one of Footasylum’s losing bidders said the nature of the Competition and Markets Authority (CMA) deal meant that JD Sports’ status as a forced seller would inevitably reduce the price it hoped to fetch for the chain .
The terms of the proposed transaction and its timing were unclear as of Wednesday evening.
Earlier this year it was JD Sports and Footasylum punished together nearly £5million for sharing commercially sensitive information despite an order not to do so.
JD’s handling of his tussle with the CMA was one of the factors supporting this Departing in May by Peter Cowgillits longtime CEO and the architect of its development into one of the UK’s largest retailers.
The Lancashire-based company is also under scrutiny by the CMA over the sale of Rangers FC replica shirts.
Last month, Andy Higginson, the former Morrisons chairman, was installed as Mr Cowgill’s non-executive replacement, with a search also underway for a board chairman.
Shares in JD ended Wednesday up 1.7% at 139.8p, giving the company a market cap of just over £7bn.
JD Sports and Aurelius declined to comment.
JD Sports bows to CMA order over Footasylum with Aurelius talks | business news
Source link JD Sports bows to CMA order over Footasylum with Aurelius talks | business news