Frasers Group PLC’s (LON:FRAS) Mike Ashley has reportedly moved to mop up the remnants of former sports retail rival Dave Whelan, with a rumoured £30mln proposal to buy the DW Sports business.
Whelan established DW Sports with a 2009 transaction for a group of JJB stores, and it has subsequently expanded since JJB Sports descended into administration in 2012 – when Ashley’s Sports Direct meanwhile bought 20 stores and acquired (then retired) the brand name.
Earlier this month DW was put into administration in the wake of the COVID-19 pandemic. The business operates 73 gyms and 75 retail stores in the UK, its sister company Fitness First is a separate entity.
A deal for DW would represent the latest piece of high street consolidation for Ashley’s Frasers Group which was rebranded from the Sports Direct moniker back in December 2019.
It would add DW to the high street portfolio that has already scooped up the Jack Wills, Evans Cycles and House of Fraser.
Frasers' head of elevation was also quoted in the Times as saying the company is “actively” looking at buying some Debenhams stores, with reports the department store group could soon be wound up.
In London, Frasers Group shares gained 6.4p or 2.26% to change hands at 289.8p in Monday morning’s deals.