The leading retailer for golfing products as well as its parent company, Powerhouse Golf, entered administration on Friday after months of accounting issues and struggling with falling sales. The business also ran up debt with HMRC, landlords and suppliers.
Direct Golf UK was sold to Sports Direct, which had a stake in the business, in a pre-pack administration deal.
According to reports, there had been a public ‘power struggle’ between the two businesses in the lead up to the appointment.
Owner of Direct Golf, John Andrew, had originally filed a notice of intention to appoint Begbies Traynor early in October. However Sports Direct, led by Mike Ashley, issued a winding up petition to ensure they could appoint their own chosen administrators, Duff & Phelps to arrange a pre-pack deal.
Around the same time, John Andrew also alleged Mike Ashley and his team had changed the locks to Andrew’s offices whilst he was meeting with lawyers, forcing Direct Golf employees to leave the site. Furthermore, it was reported Sports Direct had removed Andrew from Direct Golf as a director.
Philip Duffy and Benjamin Wiles of Duff & Phelps were appointed to oversee the pre-pack administration sale on Friday. All 162 jobs have been saved and the stores will move across to Sports Direct.