Sports Direct enters US market in $101m deal

News


21 Apr, 2017

Sports Direct enters US market in $101m deal

CEO and founder of Sports Direct, Mike Ashley has expanded his business empire after acquiring a bankrupt American retail chain in a $101m (£79m) deal.

On Friday, Sports Direct announced that it is buying Eastern Outfitters out of bankruptcy. Eastern Outfitters owns discount chain Bob's Stores and Eastern Mountain Stores, which sells camping and outdoors equipment.

The $101m deal means that Sports Direct have gained a foothold in the US for the first time and includes roughly 50 stores spread across the country.

The company says the deal "will provide Sports Direct with a footprint in US bricks-and-mortar retail and a platform from which to grow US on-line sales". The sports firm also said that the deal is expected to be completed in the first half of May this year.

Sports Direct is the UK’s most popular sport discount store and current has about 700 stores operating across the nation with a further 400+ spread across Europe.

In recent months, Sports Direct has been under fire for allegedly mistreating its employees and for poor working environments. In an effort to clean up its act, last week Sports Direct appointed a 30-year-old shop manager from Barnstaple as its first ever representative for its workers.

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