25th Aug 2020 17:55
(Alliance News) - Frasers Group PLC on Tuesday confirmed that US sportswear giant Nike Inc has cut distribution ties with the company's US subsidiary Bob's Stores and, as a result, the unit will be "immediately" placed under a strategic review.
The Berkshire, England-based sportswear and clothing retailer, which was formerly called Sports Direct International, said Nike, as of March 2021, will no longer distribute to Bob's Stores, which trades from 24 outlets in the US.
Nike's decision does not directly affect the rest of the Frasers Group, the company explained, adding that the Bob's Stores estate does not include any of the new elevated stores which are core to the Frasers Group elevation strategy.
"Frasers Group continues to invest in its store portfolio and brand relationships and remains committed to its elevation strategy," the FTSE 250-listed company said.
Shares in Frasers Group ended 1.7% higher in London on Tuesday at 350.80 pence each.
On Monday, Mike Ashley's Frasers Group bought parts of DW Sports for GBP37 million.
The company behind Sports Direct and House of Fraser had said it would pay GBP37 million for parts of the assets of DW's gym and fitness business.
It includes some of the company's stock, but not the brand name DW, or the firm's intellectual property.
Around 1,700 jobs were put at risk when DW Sports fell into administration at the start of the month.
By Tapan Panchal; [email protected]
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