JD Sports has reacquired Go Outdoors from its administrators for £56.5 million.
The group has taken an initial 12-month licence such that it will continue to occupy all of the Go stores and, subject to realism and flexibility in the future leases, intends to retain the majority of Go’s retail estate and preserve “as many jobs as possible”.
The board considered a number of strategic options for Go which included the appointment of advisers in May 2020 to market the business for a potential sale. It examined the offers made through the marketing process together with the other options available to it and has ultimately determined that, if fundamentally restructured, Go has “a future in the group”.
Peter Cowgill, executive chairman, said: “As a consequence of COVID-19, Go Outdoors was no longer viable as previously structured and would have absorbed capital at an unsustainable rate for the foreseeable future. Having investigated all available options for the business, we firmly believe that this restructuring will provide Go Outdoors with a platform from which it can progress whilst remaining a member of the Group. Most importantly, we are pleased that it will protect the maximum number of jobs possible.
“We look forward to having positive conversations with landlords and agreeing new flexible lease contracts which reflect the widely reported challenges of reduced consumer footfall.”
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