Upmarket lingerie chain Agent Provocateur today entered administration before being bought by Sports Direct-backed firm Four Marketing.
Mike Ashley's Sports Direct, which holds a 25% stake in Four Marketing, said it was "fully supportive" of the acquisition.
The retailer was thought to be the frontrunner for the business, which had also attracted interest from private equity groups Lion Capital and Terra Firma. It reportedly bid £27.5 million for the chain at the weekend.
Four Marketing, owned by parent Four Holdings, represents brands like Guess, 7 for All Mankind and Orla Kiely. Its boss Charles Perez said: “We are delighted to welcome Agent Provocateur into the Four Holdings business.
“The global status of this brand provides significant opportunities and we are excited to begin working to further grow the brand equity.”
Agent Provocateur, co-founded in 1994 by Dame Vivienne Westwood’s son Joe Corré, was put up for sale by owner 3i this year. In November 3i reduced the value of its investment in the firm by £39 million saying it had been hit by a slowdown in luxury spend in key markets and the discovery of “accounting issues”.
Haitong analyst Tony Shiret said Sports Direct could see Agent Provocateur as a platform for the development of womenswear across the company and a main own brand. “I doubt Sports Direct would buy it to run it as it is currently.”
Corré criticised the deal, conducted via an insolvency process known as a pre-pack, calling it "preposterous" and raised fears for the future of Agent Provocateur’s more than 600 employees.
