Jack Wills sold to Mike Ashley in rescue deal

MIKE Ashley’s Sports Direct has bought preppy fashion chain Jack Wills for £12.8m as the tycoon seeks to bolster his ailing retail empire.

Ashley, 54, ( pictured) plucked it out of administration after he went head-to-head with edinburgh Woollen Mill owner Philip Day, who he also defeated last year when Sports Direct acquired House of Fraser for £90m.

Sports Direct purchased Jack Wills’ assets and 100 stores across the Uk and ireland in a pre-pack administration deal, meaning it will not be saddled with the retailer’s debts.

Administrator kPMG is considering options for Jack Wills’ 10 overseas stores.

The purchase is likely to raise eyebrows in the City as Newcastle United owner Ashley continues his buying spree of troubled firms. Sports Direct’s latest acquisition comes just days after Ashley admitted buying House of Fraser was a mistake and said the department store was in terminal decline. But he has also snapped up evans Cycles and Sofa.com, and failed to engineer takeovers of Patisserie Valerie, HMV and Debenhams. Sports Direct’s shares have plunged almost 47pc over the past year amid concerns that Ashley has lost sight of the day-to-day running of the business. The latest acquisition was led by Ashley’s future son- in- law, Michael Murray, who has been tasked with improving Sports Direct’s brand image and finding suitable locations for new stores.

Murray, who is engaged to Ashley’s daughter, Anna, has been handed more than £10m in two years by Sports Direct.

He said: ‘Jack Wills has made a name for itself carving out a unique place in the minds of consumers since its launch and has today grown into one of the most recognised British fashion brands.

‘Our role will be to support the business and help elevate the brand and restore it to its former glory.’

Jack Wills was founded in 1999 in Salcombe, Devon. it became famous for its pastel pink and navy blue university style sweatshirts and cable crew knitwear.

But the retailer has struggled to attract customers in recent years. Latest accounts revealed a 1.1pc fall in sales to £129.3m during the year to January 28 2018 and an operating loss of £14.2m.

Suzanne Harlow, chief executive of Jack Wills, said: ‘We have been focused on improving the Jack Wills proposition and the group’s financial performance.

‘Despite significant progress, the challenging trading environment led us to conclude that the company’s long-term future would be best served as part of a larger group.’