Mike Ashley firm calling for OFT probe into market

Mike Ashley

MIKE Ashley's Sports Direct yesterday called for a probe into the outdoor and sports retail markets in the wake of its failed bid to land collapsed high street retailer Blacks Leisure.

The Newcastle United owner’s company said it was disappointed by the sale of Blacks to its rival JD Sports Fashion, and accused suppliers of obstructing its own pursuit of the outdoor clothing retailer.

JD Sports confirmed on Monday that it had bought Blacks Leisure’s 290 stores for £20m in a pre-pack administration deal which will protect some 3,500 jobs. But Sports Direct said the deal was disappointing given its own bid for Blacks Leisure in 2010, which was dismissed as “inadequate”. The total Blacks share value written off amounts to £52.6m, it said.

In addition, Sports Direct said it was unable to offer a higher price for Blacks because suppliers, such as The North Face, would not return its calls to confirm whether they would continue to supply the chain under Sports Direct ownership.

The firm called for an Office of Fair Trading investigation into the outdoor and sports retail markets to ensure they are operating in the best interests of the consumer.

Sports Direct has a fractious history with Blacks Leisure. As well as its failed 2010 bid, Sports Direct has turned down an appeal for an equity fundraising on more than one occasion, and was also behind the removal of David Bernstein as chairman last summer.

Before Blacks fell into administration, Sports Direct was the largest shareholder, with a stake of around 22.5%.

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