What is the Planning for the High Street From Mike Ashley

The founder of the Sports direct aims to take over the High streets of UK. In this week the businessman, as well as owner of a retail empire which expands their trading with luxury fashion and budget sportswear, included Evans Cycles to the names of the High Streets in his entwined retail empire.

With a specific arrangement, the cycle chain introduced for a quick sale as it can be liberated from its loans. After being placed into administration the cycle chain holds the price tag of just £8m.

In August it followed the £90m deal by Sports Direct for purchasing House of Fraser after placing the store chain in administration by the department.

A strategic advisor Richard Hyman told the retailers, “I don’t really think he is got a strategy as such, he is an opportunist.”

“But I need to make clear that I don’t mean that in a pejorative sense!”

The deals have been halted on to a business that tracks down its roots to 1982 while Mr Ashley began Sports Direct along with only one store and £10,000 amount of loan from his parents.

In 2007, Sports Direct was hovered on the stock market, by which time it established more than 400 stores which were taken over by Lillywhites in London and the reputed brands like Slazenger and Donnay.

Sports Direct includes an ample property business, lingerie chain Agent Provocateur, clothing chain French Connection, the upmarket clothing outlets Flannels and Cruise and more brands, including Lonsdale and Firetrap and obviously Newcastle United football club.

The Chief Executive of Retail Economics Richard Lim thinks there is not any tangible plan. According to him, the deals of Mr Ashley are a “combination of both strategic and opportunistic”.

But while Mr Ashley discloses that he will close half of his 62 shops, the buying of the Evans Cycles chain wether fit with his planning for dominance in the field of sports.

The analyst at the stockbrokers Peel Hunt said, “There are [acquisitions] that are clearly relevant. Evans is in that camp. In conversation with Mike five years ago [about] areas of sports and leisure he wasn’t involved in, he’d put cycling and fishing in that camp. Evans is relevant to the sports retailing business.”

by Haimantee Ghosh on November 3, 2018

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