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Frasers Group has announced it has placed its US subsidiary Bob’s Stores under review after sportswear giant Nike ended its distribution deal.
Frasers confirmed that Nike has notified the company that it will end its agreement with the outlet that operates from 24 stores in the US in MArch 2021.
The group added that the decision does not directly affect the rest of the Frasers Group and does not include any of the new “elevated stores which are core to the Frasers Group elevation strategy”.
In a statement it said: “Following recent press reports, Frasers Group confirms that it was yesterday notified that, as of the end of March 2021, Nike will no longer distribute to Bob’s Stores, a Frasers Group subsidiary that trades from 24 outlets in the United States. Frasers Group understands that Bob’s Stores is one of several US based retailers Nike has cut ties with in recent days.
“The Bob’s Stores estate does not include any of the new elevated stores which are core to the Frasers Group elevation strategy. Frasers Group continues to invest in its store portfolio and brand relationships and remains committed to its elevation strategy. While Nike’s decision does not directly affect the rest of the Frasers Group, Bob’s Stores will immediately be put under strategic review.”
Earlier this week, Frasers Group 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”.
