Ashley swoops for DW Sports assets

Mike Ashley’s Frasers Group has said it will save “a number of jobs” after buying parts of DW Sports for £37 million.

The company behind Sports Direct and House of Fraser said it would acquire some assets of DW’S gym and fitness business which entered administration at the start of this month.

It includes some of the company’s stock, but not the brand name DW, or the firm’s intellectual property.

DW Sports operated two shops in Dundee but Frasers would not confirm yesterday if the Gallagher Retail Park and Murraygate shops would be saved in the deal.

“The transaction complements the existing gym and fitness club portfolio within the company’s group and is consistent with the group’s elevation strategy,” it said in a statement.

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

The price could rise to £43.9m if Frasers also acquires some leaseholds, the buyer said.

During the year ending March 31 2019, DW had gross assets of almost £195m, and made a loss of just over £20m.

DW appointed insolvency specialists on August 3, after its income was hit by the lockdown that forced its stores and gyms to close.

It operated 73 gyms and 75 retail sites in the UK, but had already revealed plans to shut 25 stores in July.

Earlier this month DW said it would wind down the retail business for good, with the remaining 50 stores to close.

The DW Sports Fitness First gym at Gallagher Retail Park in Dundee was not part of the liquidation procedure as it runs as a separate business.

Mike Ashley.