The competition watchdog has instructed JD Sports to sell Footasylum.
The Competition and Markets Authority said that the takeover could lead to a worse deal for Footasylum’s customers.
As Footasylum would no longer face competition from JD Sports, customers would have fewer options and could face higher prices, fewer discounts, and less choice of products in-store.
Footasylum was purchased by JD Sports in a takeover announced in April 2019.
Peter Cowgill, executive chairman of JD Sports said it was not fair for the CMA to conclude that “JD would have an incentive to worsen the offer in Footasylum to the detriment of both consumers and suppliers.”
Both brands are focusing on direct to consumer (DTC) sales).
Cowgill added: “Overall, the CMA’s decision today continues to be inexplicable to anyone who understands what difference the pandemic has made to UK retail and how competition and the supply chain in our markets actually work. It is deeply troubling at a time when the UK high street has been seriously damaged already and is vulnerable to further closures.”
JD said it was studying the report in detail and would carefully consider its options accordingly.