JD Sports has warned it is looking at a number of 'strategic options' for Go Outdoors, just four years after buying the company for £112million.
The chain has filed a notice of intent to place the fishing, cycling and camping retailer in administration, with more than 2,000 jobs at risk.
JD Sports said in a statement on Monday: "The Group can confirm that it has considered a number of strategic options for Go and that Go's directors have lodged the Notice in Court.
"This Notice creates an immediate moratorium around the company and its property which lasts for ten business days. During this moratorium, Go's creditors cannot take legal action or continue with any existing legal proceedings against the company without the Court's permission."
Go Outdoors employs about 2,400 staff across 67 stores, specialising in camping equipment, bikes and clothes.
The chain closed all its stores during April but began to reopen them from early May. However, continued restrictions on outdoor activities and the closure of campsites is likely to have hit its already struggling numbers.
The administration comes just four years after JD Sports paid £112million for the chain in November 2016, adding to its portfolio of companies, which include other outdoor leisure brands, including Blacks and Millets.
Go Outdoors is the latest retailer pushed to the brink during the coronavirus crisis.
A string of retailers including Oasis, Warehouse, Laura Ashley and Debenhams have also called in administrators since the crisis hit and hundreds of high street jobs have been shed.
In April, Cath Kidston made 900 people redundant when it permanently closed all its 60 stores in the UK.
Go Outdoors, which accounts for around 5% of JD Sports’ annual turnover, was also struggling before the pandemic, and posted a loss of around £40million in the six months to August 2019.
JD Sports is expected to publish its full year results on 7 July.
