Mike Ashley buys in cut-price deal - Sky News

Mike Ashley buys in cut-price deal - Sky News
@ Copyright :
Darren Staples(Reuters)
Text size Aa Aa

(Reuters) - Billionaire Mike Ashley, who controls British sportswear retailer Sports Direct, agreed to acquire for "a nominal sum", Sky News reported on Friday, ending a battle with ScS Group to buy the maker of handcrafted beds and sofas.

The deal would allow Ashley to add more concessions to House of Fraser chain he rescued last year, the report said, adding the cut price deal for had been a "solvent transaction" which preserved jobs.

British sofa and carpet retailer ScS Group said on Friday it was no longer in talks for a potential deal to buy Ltd, days after it confirmed the talks.

Sky News had reported earlier this week that Ashley was competing with ScS to buy's sale comes as retailers struggle with a slowdown in spending amid uncertainty whether Britain will manage an orderly withdrawal from the European Union.

The deal adds to an already lengthy list of UK investments by Ashley, who also owns Premier League soccer club Newcastle United.

Last year, Sports Direct bought department store group House of Fraser for 90 million pounds and snapped up specialist cycling retailer Evans Cycles.

It also owns a raft of stakes in other UK retailers, including nearly 30 percent of Debenhams.

Sky News has also reported that Ashley, who owns 61 percent of Sports Direct equity and is a well known business figure in Britain, is in talks to rescue music retailer HMV from administration.

ScS did not give a reason for ending the talks., put up for sale last month, is thought to have been hurt when House of Fraser went under and a number of its outlets were shuttered, Sky News had reported.

Private banking and asset management firm LGT took control of from private equity firm CBPE in April.

ScS, which stands for "Sofa Carpet Specialist", said in October it would stop selling its sofas and carpets at House of Fraser stores from January, saying the partnership had ceased to be beneficial since Ashley bought the collapsed department store group.

Sports Direct, ScS and did not immediately respond to requests for comment.

(Reporting by Noor Zainab Hussain in Bengaluru and additional reporting by James Davey in London; Editing by Anil D'Silva)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.