20 July 2020
It is heard that unsecured creditors of Go Outdoors, may just get 1p for each £1 owed. JD Sports, who bought back the company via a pre-pack administration, said it will pay the taxman, customers' returns, branded stock suppliers and gift cards. Landlords and administrators are looking to be left out of pocket, as Deloitte's statement of proposals shows.
Retail Gazette shares more.
23 June 2020
JD Sports buy back Go Outdoors for £56.5m, in a pre-pack deal.
Despite running a sale process, JD Sports said the business had a future in the wider group, so long it is fundamentally restructured. The pre-pack deal therefore transfers over and saves existing staff.
Michael Magnay and Daniel Butters of Deloitte were appointed as the joint administrators to Go Outdoors after the option of seeking a sale of the business was rejected.
Magnay said: “Like many high street retailers, Go Outdoors has been seeking to address a number of underlying business challenges in the current UK retail environment, which have been exacerbated by the impact of COVID-19. This successful sale will provide Go Outdoors with an opportunity to restructure its business to secure its future for the long term. I’m particularly pleased that we have been able to secure the employment of all the company’s workforce, and we’d like to thank all employees and key stakeholders for their support throughout this process.''
21 June 2020
JD Sports Fashion file a notice of intention to appoint Deloitte as administrator to subsidiary, Go Outdoors.
The retail giant completed the acquisition of the sports and athleisurewear retail chain in 2017. In November 2016 the deal was signed, including £16m of net debt. Then in May 2017 the Competition and Markets Authority approved the £112m deal.
Go Outdoors specialises in camping, fishing and cycling equipment and trades from 67 outlets. In April 2020, it rebranded as Go Indoors to support the NHS and Government’s coronavirus efforts.
It is understood that Go Outdoors ran a sale process in recent weeks to try and attract interest from potential buyers, of which significant interest was found.
An insolvency process is expected to be used to restructure and ‘slim-down’ the chain, further highlighting the high street crisis worsened by the unprecedented covid-19 pandemic. With the chain on the brink of collapse, 2,400 jobs are in peril.
The notice of intention to appoint administrators has given the company 10 days to either sell the business or put together a rescue plan with additional funding.
In the six months to August 3 2019, a loss of £291.1m was reported.
JD Sports Fashion declined comment.