Trends & Features

JD Sports buys loss-making Irish retail chain

JD Sports has bought the 23-store Champion Sports retail chain for a nominal amount in order to boost its presence in the Republic of Ireland.

Prior to the acquisition, which is subject to the approval of the Competition Authority, JD only had eight stores in the Republic of Ireland.

Founded in 1992, Champion posted an operating loss of €1.8 million in 2009 on a turnover of €54million. Despite this JD has confirmed it will be retaining both Champion’s management team and the retailer’s fascias.

JD has also agreed to advance €17.1 million to settle Champion’s debts.

Champion has been hit by the decline in the Irish economy and an inflexible fixed property cost base, which JD says it intends to address.

Says Peter Cowgill, executive chairman of JD: “By drawing on the current management team’s expertise and local knowledge, we are confident that this acquisition will bring financial benefits in the future.”

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