Frasers closes in on ailing Norwegian sportswear giant takeover

Frasers Group has confirmed that it is close to assuming a controlling stake in Norwegian sportswear company XXL ASA, but has warned that it may not be able to save the company.

The group has confirmed that should its offer be accepted it will control 92% of the company’s share capital and 90% of its voting shares.

In the statement confirming this, Frasers issued multiple warnings about XXL claiming it is in “significant distress”.

Frasers launched a bid for the company in December 2024 aiming to acquire more than 50% of it at NOK 10 per share (£0.73), valuing XXL at NOK 246.35m (£17m). However, it abandoned that offer in February this year citing a lack of support from other major shareholders.

XXL currently has a portfolio of 85 stores across Norway, Sweden, and Finland, as well as an online platform, and employs over 4,000 people. It specialises in products for sports and outdoor activities such as cycling, hunting, and skiing.

Frasers said in a statement: “Frasers is acquiring a business which is in significant distress. As such, all stakeholders, including but not limited to, brand partners, landlords, suppliers and partners, will need to work collaboratively with Frasers in its efforts to save the XXL business in its current form.

“Frasers does not currently have sufficient information to be able to determine how much of a viable proposition XXL in its current form is, and whilst its current intention is to work on stabilising the XXL business, this will be more difficult given the passage of time, and there is no guarantee that XXL can be saved in its current form or at all.”

It added: “Having offered to provide support to help XXL navigate its challenges over the past 18 months, and been rebuffed, this is a situation which Frasers believes could have been avoided. In the meantime, XXL has not been able to execute on its proposed turnaround plan and XXL’s financial and trading position has continued to deteriorate.”