Mike Ashley’s Frasers Group has put the future of US operation in doubt after sportswear giant Nike said it would no longer supply it.
The group, then called Sport Direct, bought Bob’s Stores as part of a £78m deal in 2017.
But now it says the company is “under review” after Nike cut supplies as part of long-term plans to concentrate on e-commerce and selling direct to consumers.
In a statement, Frasers Group said: “Frasers Group confirms that it was yesterday notified that, as of the end of March 2021, Nike will no longer distribute to Bob’s Stores, a Frasers Group subsidiary that trades from 24 outlets in the United States.
“Frasers Group understands that Bob’s Stores is one of several US based retailers Nike has cut ties with in recent days.
“The Bob’s Stores estate does not include any of the new elevated stores which are core to the Frasers Group elevation strategy. Frasers Group continues to invest in its store portfolio and brand relationships and remains committed to its elevation strategy.
“While Nike’s decision does not directly affect the rest of the Frasers Group, Bob’s Stores will immediately be put under strategic review.”
Frasers Group this week bought part of DW Sports - founded by Mr Ashley’s long-time rival Dave Whelan - for £37m.
Mr Ashley said the deal would save some jobs at the company, which went into administration at the start of August.
