Mike Ashley's Frasers snaps up DW Sports from administration for £37m

Mike Ashley’s Frasers Group, which owns Sports Direct, has snapped up the assets of Dave Whelan Sports from administration for £37 million.

The sports retailer has bought up “certain of the assets relating to DW's gym and fitness business, including certain stock but excluding the DW business names and intellectual property”, it said today.

It will pay out up to £6.9 million more "contingent upon the number of leasehold interests eventually acquired".

The deal, which protects 922 jobs, will see DW's 40 leisure clubs and 31 retail outlets which are currently open switched over to Sports Direct International, with a further three gyms transferring to SDI but still shut due to local Covid-19 restrictions.

Administrator BDO raised hopes that some further outlets would remain open, it said: "a number of leisure clubs and retail outlets that had closed either prior to, or during, the administration may additionally be re-opened by SDI in due course."

When administrators were appointed last month, DW Sports operated 72 leisure clubs and 50 retail outlets across the UK, employing 1,800 people. "Some retail outlets had closed prior to the administration, whilst it became necessary to close a further 19 retail outlets and 29 leisure clubs during the administration", BDO said.

Frasers said: "The transaction compliments 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."

In its last accounts, for the year to March 31, DW had gross assets of £194,976,000 and made a loss of £20,085,000.

DW Sports, which was founded by former Wigan Athletic owner Dave Whelan, operated 73 gyms and 75 retail sites across the UK but announced plans to shut 25 of its stores last month.

DW's sister brand Fitness First, which has 43 gyms, is not affected by the administration and sale.