22nd Jun 2020 07:46
(Alliance News) - Retailer JD Sports Fashion PLC on Monday confirmed it has filed to appoint administrators at its Go Outdoors unit.
The FTSE 100 firm said the notice means a 10-day moratorium has been implemented, so the outdoor apparel seller's creditors cannot take any legal action, nor continue with existing proceedings without court permission.
"Administrators have not yet been appointed, and the group will make no further comment at this time," JD Sports added.
Sky News late Saturday reported that JD Sports had called in administrators at the unit, which has a workforce of about 2,500.
Go Outdoors operates about 60 stores in the UK, most of which are located in out-of-town retail parks.
It's further evidence of the pressure piling onto UK retailers amid the Covid-19 pandemic. High street names such as Debenhams, Laura Ashley and Cath Kidston have recently sunk into administration.
JD Sports stores reopened in England and Northern Ireland earlier in June, after Covid-19 lockdown measures eased.
The news about Go Outdoors comes just over three years after the UK competitions watchdog approved the GBP112.3 million acquisition.
Meanwhile, last week, JD Sports appealed the UK Competition & Markets Authority's decision to block its acquisition of Footasylum. JD Sports was in May ordered to sell Footasylum, which it initially agreed to buy for GBP90 million.
By Eric Cunha; [email protected]
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