Mike Ashley’s Frasers Group, formally known as Sports Direct, has bought the assets of DW Sports for £37m after the gym chain collapsed into administration earlier this month.
Frasers said this morning that it had acquired “certain of the assets relating to DW’s gym and fitness business, including certain stock”.
The deal excludes the DW business names and IP, it said.
An additional payment of up to £6.9m may be made, depending on the number of leasehold interests eventually acquired.
DW Sports, which was founded by former Wigan Athletic owner Dave Whelan, collapsed into administration this month, putting 1,700 jobs at risk. Frasers said this morning that the acquisition has saved “a number of jobs”.
The sports retailer and gym chain appointed administrators on 3 August, and immediately closed 25 of its 75 stores and ceased trading through its website.
The remaining 50 retail sites continued to trade but launched closing down sales.
In its latest accounts, for the year ended 31 March 2019, DW Sports had assets of £194.98m and made a loss of £20.09m, Frasers Group said.
The latest Frasers acquisition follows a string of deals that has seen Sports Direct founder Ashley expand his high street empire, which also includes House of Fraser and Jack Wills.
In a statement this morning Frasers Group said: “The transaction complements the existing gym and fitness club portfolio within the Company’s group and is consistent with the group’s elevation strategy.
“Frasers Group looks forward to elevating the gym and fitness assets acquired pursuant to the transaction under the group’s existing iconic Everlast brand, and is also pleased to have saved a number of jobs.”