Sports Direct International PLC (LON:SPD) said its current expectation is that at least 50% of the existing Evans Cycles stores will remain open following its purchase of the UK-based specialist bike retailer from the administrators of FW Evans Cycles (UK) Limited, announced on Wednesday.
In a brief statement, the FTSE 250-listed group also confirmed that the consideration paid for the Evans Cycles business was £8mln, of which around £2mln was paid to fund Evans Cycles' October payroll.
READ: Sports Direct new frontrunner to buy Evans Cycles after reports Halfords has dropped out
In the purchase statement, released after-hours on Tuesday, Sports Direct’s chief executive Mike Ashley had commented: "We are pleased to have rescued the Evans Cycles brand. However, in order to save the business we only believe we will be able to keep 50% of stores open in the future. Unfortunately some stores will have to close."
Evans - which was owned by private equity firm ECI Partners – currently trades from just over 60 stores across the UK and can trace its history to 1921.
The group is the second retailer that Ashley has rescued from administration in as many months. In August, Sports Direct paid £90mln to buy department store chain House of Fraser shortly after it entered administration.
Last week, Sky News reported that fellow FTSE 250-listed retailer Halfords PLC (LON:HFD) had dropped its plans to buy the business leaving Sports Direct as is the frontrunner in the race to acquire Evans.
The news report added that any takeover was likely to value Evans at between £10mln and £20mln.