The Frasers Group acquisition spree shows no signs of slowing down.
JD Sports Fashion Plc announced Friday that it has sold 15 fashion brands to British retail group Frasers Group, owner of nameplates including Jack Wills, House of Frasers, Sofa.com and Flannels.
For £47.5m ($57.9m), JD CEO Regis Schultz said: “JD is rightly recognized for its customer focus and the Group’s global sports fashion. We believe the most significant opportunity lies in the continued international development of our business.” handle. “We are delighted to have reached an agreement to sell these attractive but not core brands. year.
Frasers Group includes Base Childrenswear, Choice, Clothingsites (including Brown Bag Clothing), Cricket, Giulio, Kids Cavern, Missy Empire, Nicholas Deakins, Pretty Green, Prevu Studio, Rascal Clothing, Tessuti (including Xile), Scotts, Watch Acquired the Shop brand. and top grade sportswear (including Get The Label). Acquired shares held by JD and now bears brand debt.
The stock exchange will be immediate for eight brands, with the remaining seven to be fully acquired early next year.
Freed from these operations, JD said it can now focus more fully on opportunities across its portfolio, particularly international and digital expansion of its core premium sports fashion brands, including names such as DTLR, Footpatrol and Finish Line. .
The sale will result in JD Sports recognizing an exceptional non-cash charge of approximately £100 million ($121.8 million) in its annual accounts for the period to 28 January 2023.
JD’s first half results to the end of July showed pre-tax profit down 18.2% in the same period last year to £298.3 million ($342.2 million). Former chairman and CEO Peter Cowgill has said that UK regulators have forced retailers to comply with the finding that Cowgill violated an interim order related to JD’s banned Footaslyum deal. He left the company in May after serving his £4.3m ($5.8m) fine. Additionally, the Competitive Markets Authority filed price-fixing allegations against J.D. for the “level and timing of discounts” on some Rangers-branded apparel toward the end of the 2019 football season, which was also Cowgill’s tenure. JD said it would award £2 million ($2.3 million) in costs, including legal fees, for the 52 weeks ending 29 January 2022.
Frasers seems to be going crazy with acquisitions this year, not only buying bankrupt Sneakerboy and Missguided, but also increasing its investment in Hugo Boss and Asos. In September, Frasers Group was snubbed by Australian online fashion marketplace MySale. MySale rejected her $13.6 million ($16.2 million) cash offer from the group for shares it didn’t already own.
Antigua’s parent company reported on December 8 that the group’s revenue had increased by 12.7%, mainly due to acquisitions. Premium His Lifestyle Earnings He increased by 24.7%. This was largely due to Flannel’s continued growth in new stores and online. Excluding acquisitions, revenue increased by 22.2%. Reported profit before tax was £284.6m ($345.6m), up 53%. This reflects continued improvement in product selection in our core UK operations. After tax, he reported a 52.8% increase from £143.7m ($174.5m) to £219.6m (about $266.7m).