British sports and fashion group Frasers said it will seek to buy SportScheck’s business and assets out of administration after the German sporting goods retailer filed for insolvency.
Frasers had agreed to purchase SportScheck in October for an undisclosed price from debt-addled Austrian property empire Signa Retail Department Store Holding to expand its presence in Germany, but had not yet closed the deal.
Signa on Wednesday filed for self-administered reorganisation proceedings, and media reports followed on Thursday that SportScheck would also file for insolvency.
Frasers confirmed SportScheck’s administration in its statement and said it exercised its rights under its agreement with Signa to withdraw from the deal.
However, the London-listed group said it intends to work with SportScheck’s appointed administrator to purchase its business and assets.
“While Frasers is disappointed by the insolvency of SportScheck, it continues to believe that SportScheck is an attractive asset in one of Europe’s most important markets for Sports,” the company said.
Source: Reuters.com