Frasers Group buys DW Sports out of administration

Frasers Group has snapped up the assets of Dave Whelan Sports (DW Sports) from its administrators for a sum of £37m.

According to the group, it has acquired certain assets relating to DW’s gym and fitness business, including certain stock but excluding the DW business names and IP.  

An additional consideration of up to £6.9m may be payable “contingent upon the number of leasehold interests eventually acquired”.

DW Sports first collapsed into administration at the start of the month, as BDO announced that its restructuring partners, Graham Newton and Ryan Grant, were appointed joint administrators of the sportswear and fitness company on 3 August.  

At the time, BDO warned that 1,704 roles across the business were at risk of redundancy following its collapse, though administrators said they would work towards “saving as many jobs as possible” through a possible sale of all or part of the business.    

It was later reported last week that Frasers Group had reportedly made a takeover bid for former rival Dave Whelan’s DW Sports.

According to the Sunday Times, Frasers Group was set to offer around £30m to administrators BDO for the DW estate, which comprises 73 gyms and 75 stores. It was also thought that BDO was looking for offers of around £20m. 

In a statement, 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.”