Gloves are off as US firm sues Sports Direct
SPORTS DIRECT is being sued by a US business partner after a deal to sell sports nutrition products in North America turned sour.
Court papers filed in New York have revealed Trident Brands agreed a licence deal with Everlast – the boxing brand owned by billionaire Mike Ashley through his Sports Direct chain – to sell supplements including ‘muscle building and performance products, weight loss products, and anti-ageing products’.
The products were to be sold under the Everlast and Everlast Sports logos in return for royalties paid four times a year.
The papers claim Wisconsinbased Trident spent around $3 million (£2.27 million) developing products but the deal was ultimately ‘hugely unsuccessful... generating only approximately $100,000 (£76,000) in sales’.
Trident said it suggested broadening the offer from directto-consumer to a ‘mass retail’ model with a revised royalty deal.
Everlast initially agreed but then ‘delayed and misled’ Trident when it tried to get the deal signed off, according to the documents.
Trident claims Everlast then continued to demand quarterly payments under the original deal. Trident asked the court to declare it has ‘no obligation’ to do so.
It has also requested ‘an award of compensatory and punitive damages in an amount to be determined at trial’ plus costs.
Sports Direct did not respond to requests for comment.