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JD Sports set to appoint administrator for Go Outdoors

The sports fashion retailer is also appealing a CMA ruling
June 22, 2020

JD Sports Fashion (JD.) has applied to appoint an administrator for its Go Outdoors brand. The news follows the sports apparel retailer’s decision last week to appeal the Competition and Markets Authority’s (CMA) May ruling that it must sell rival retailer Footasylum, which it acquired last year.

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JD Sports acquired Go Outdoors four years ago for £112m. The brand, which accounts for around a half of JD’s outdoors segment, has struggled with product availability issues and recorded a “significant loss” in JD’s August half year results. With only 10 per cent of Go Outdoors’ sales made online, the brand has been left exposed to a decline in footfall brought about by the coronavirus pandemic. Analysts at house broker Peel Hunt speculated that “store closures are probable”.

The CMA confirmed last week that JD had appealed its ruling on Footasylum, after the regulator argued that consumers view the pair as close alternatives, with the tie-up weakening competition in the sector. JD said that the watchdog’s findings were based on “an inaccurate and outdated analysis of the UK sports retail competitive landscape”.

The Competition Appeal Tribunal is expected to publish a summary of the appeal application imminently.