Sports Direct mulls the sale of 28 brands to focus on upmarket labels
Sports Direct is reportedly considering the sale of 28 sportswear and lifestyle brands such as Everlast, Lonsdale and Kangol as part of efforts to target more upmarket consumers.
Instead Sports Direct would focus investment on luxury fashion brands such as Gucci and Michel Kors as it migrates from volume sales, cluttered aisles and price promotions to high-end trade.
Under this approach, Sports Direct chief Mike Ashley is said to have been in communication with House of Fraser chairman Frank Slevin with a view to putting concessions for its Lilywhites retail brand within its department stores.
The sell-off would follow hot on the heels of its disposal of the footwear brand Dunlop to Japan’s Sumitomo Rubber Industries for $137.5m – a healthy mark-up on the £40m paid by Ashley for both the Dunlop and Slazenger brands back in 2004.
Sports Direct is seeking to turn its fortunes around following a spate of scandals around zero hours contracts and sub-minimum wage salaries for staff.