FRASERS TO BUY GYM AND FITNESS ASSETS

BY TRICIA PHILLIPS MIKE Ashley’s Frasers Group has promised to save jobs after a £37million deal to buy part of DW Sports from administration.

The company behind Sports Direct and House of Fraser said it would buy parts of the assets of DW’s gym and fitness business, including stock, but not the brand name DW or the firm’s intellectual property.

Around 1700 jobs were put at risk when DW Sports fell into administration at the start of August.

Ashley’s company, which also includes Evans Cycles and Game, has said it would save some of these jobs but has not specified how many.

In a statement, Frasers said: “The transaction complements the existing gym and fitness portfolio within the company’s group and is consistent with the group’s elevation strategy. Frasers

Ashley will save jobs

PUB chain Wetherspoon says sales are still down year on year, despite the Government’s subsidised meal scheme, and is calling for further VAT help.

The firm said 844 pubs are now open out of a total of 873 but bar and food sales are 16.9 per cent down for the 44 days to August 16, compared with the same period last year.

It has forecast a loss for the year and said the Government should keep the lower 5 per cent VAT rate.

Group looks forward to elevating the gym and fitness assets acquired pursuant to the transaction under the group’s existing Everlast brand, and is also pleased to have saved a number of jobs.”

The price could rise to £43.9million if Frasers also acquires some leaseholds. In the year ending March 31, 2019, DW had gross assets of almost £195million and made a loss of just over £20million.

It operated 73 gyms and 75 retail stores around the UK but it had announced plans to shut 25 stores in July.

Fitness First, DW’s sister brand, which has 43 gyms is not affected by the administration and sale.

The firm appointed insolvency specialists on August 3, after its income was hit by lockdown which forced it to close stores and gyms.

OLDHAM-based Ultimate Products has announced it is repaying all of the funds it claimed through the Government’s furlough scheme. The group says its profitability and cash generation have been stronger than expected during the crisis. The firm, with brands including Beldray, Intempo and Kleeneze, says it will repay the £465,237 it received.

Chief executive Simon Showman, said: “We are grateful to the Government and taxpayer for providing us with this support.”