Retail tycoons in stand-off as USC goes into administration
RANGERS shareholder Mike Ashley is involved in a dramatic stand-off with a fellow billionaire retail tycoon, after one of his firms crashed, putting hundreds of jobs at risk.
The Sports Direct owner is to close a number of stores operated under the USC brand after he put the f i rm i nto administration.
USC employs 100 people in Dundonald, Ayrshire, at a warehouse that distributes stock to shops around the country.
But the site is owned by one of Scots billionaire Sir Tom Hunter’s firms and is owed rent from USC. The arrears are now at the centre of a stand-off.
Yesterday, a fleet of Sports Direct trucks arrived at the warehouse to begin removing stock to one of USC’s main headquarters in Shirebrook, Nottinghamshire.
However, Sir Tom Hunter’s company blocked the vans from l eaving the warehouse until the arrears are paid in full.
The stand-off puts two of the country’s most successful retail tycoons at loggerheads, after the failure of the firm Mr Ashley bought from Sir Tom in 2011.
Last night, a source close to Sir Tom said: ‘We are reluctant to see all the stock leave while there is much uncertainty.’
The directors of USC filed a notice of intention to appoint receivers on Tuesday, meaning stores could be shut next week.
According to court documents, the decision was prompted by a demand from Diesel, the fashion label, for unpaid debts.
The move was seen as a blow to the chain after it had reportedly fallen out with other big brands, including Adidas, which pulled its Originals range of footwear in July. According to reports in Drapers, the retail magazine, other brands expressed anger over the stockpiling of clothing.
The firm employs around 1,000 staff across 90 retail stores – including ten in Scotland.
Insolvency specialist Duff & Phelps, along with Gallagher’s law firm, will handle any winding up.
Ironically Duff & Phelps is the company that carried out the administration of Rangers, of which Mr Ashley now owns nearly 9 per cent. Mr Ashley recently loaned the club £3million.