Another big chain feels impact of pandemic

The future of the Go Outdoors chain hangs in the balance after owners confirmed it had started the process of putting it into administration.

The outlet, which has stores in Canterbury, Chatham and Tonbridge, specialises in camping and outdoor pursuits.

But the financial pressure caused by the pandemic and store closures has weighed heavy on the firm which had struggled over recent years. With the bulk of its sales taking place across its 67 stores nationwide, the brand has not only been forced to contend with many of its stores being closed, but also lockdown restrictions limiting dramatically outdoor activities thus draining its customer base yet further. It currently employs more than 2,300 people.

On Monday morning, JD Sports Fashion Plc, the group which owns Go Outdoors, confirmed that while no administrator had yet been appointed, the process had begun.

In a statement, it confirmed it had filed a ‘notice of intention to appoint adminstrators’ for the Go brand. Administrators are called in to seek a resolve to current trading problems, either by restructuring the business, seeing if it could be sold as a going concern or, if no rescue package can be found, then winding it down. It has been suggested JD Sports is keen to keep Go Outdoors running - albeit in a dramatically reduced capacity. Crucially, during the period of administration, it will have a period of legal protection from its creditors - those it owes money to.

In a statement, JD Sports said: “The group can confirm that it has considered a number of strategic options for Go and that Go’s directors have lodged the notice in court.

“This notice creates an immediate moratorium around the company and its property which lasts for ten business days. “During this moratorium, Go’s creditors cannot take legal action or continue with any existing legal proceedings against the company without the court’s permission. “Administrators have not yet been appointed and the group will make no further comment at this time.” Accountancy firm Deloitte is being tipped to handle any administration process should it go ahead.

JD Sports acquired Go Outdoors for £112million in 2016. It also owns Millets and Blacks. It is far from alone in feeling the squeeze caused by the health crisis.

Although non-essential shops were given the green light to re-open earlier this month, mounting costs and plunging revenues have pushed many over the edge.

Laura Ashley recently confirmed it was closing its stores. Branches in Canterbury and Thanet, Maidstone and Tunbridge Wells reopened this month to hold closing down sales. Meanwhile, Debenhams, which closed a string of its Kent stores recently, announced more closures nationwide as it to struggled to keep its head above water following the enforced closure of its outlets.