Monday 18 February 2019 9:24 am

Footasylum shares rocket as JD Sports snaps up stake in retailer

Footasylum's share price surged 81 per cent this morning after JD Sports bought up an 8.3 per cent stake in the embattled retailer.

Footasylum's share price soared to 52.5p, up from a 29p close on Friday as it recovered from lows last month when the firm warned over challenges to its full-year earnings.

While JD Sports said it was prepared to buy 29.9 per cent of the firm, it had no plans to make an offer for Footasylum​ under merger regulations.

A spokesman for JD Sports said: “This share purchase is a strategic investment for the group, which has confirmed today that it is not intending to make an offer for Footasylum.

“By publicly disclosing this, and as set out in today’s regulatory announcement, the City Code on Takeovers and Mergers precludes JD Sports from making any such offer unless specific circumstances change.”

The news comes after a challenging 12 months for Footaslyum, which has issued two profit warnings and embarked on a cost-cutting plan after saying there was "no sign of a recovery" on the high street.