Sports Direct in £7m move into premium market

Sports Direct said it has purchased majority stakes in two companies controlled by Tom Hunter, dipping its toe in the premium and luxury sector of the market.

The firm, controlled by Newcastle United soccer club owner Mike Ashley, said Wednesday it has acquired 80 per cent shareholdings in Hunter's West Coast Capital, a branded fashion business, and in Cruise Clothing Ltd, a luxury retailer, for £7m.

USC has 38 stores in the UK, while Cruise has 10.

Sports Direct said Hunter, a Scottish millionaire and philanthropist, will retain a 20 per cent stake in both businesses, remain as chairman of both and provide advice to the newly established premium and lifestyle division of Sports Direct.