JD Sports Fashion has reacquired its adventurous equipment business Go Outdoors from its administrators for £56.5m.
Recently, JD Sports filed the Notice of Intention (NOI) to appoint Deloitte as its administrator at UK outdoor retailer Go Outdoors earlier this week.
Go Outdoors, which employs about 2,400 staff across 67 stores, specialises in camping equipment, bikes and clothes.
The business and all of Go assets were repurchased through its newly incorporated subsidiary JD Newco 1.
JD Sports noted that the consideration will come back to it in the form of partial repayment against historic indebtedness, intending to keep most of Go Outdoors’ retail estate and safeguard jobs.
Additionally, all pre-existing Go employees will move to the new business with all their previous employment terms and conditions preserved.
Peter Cowgill executive chairman said: “As a consequence of Covid-19, Go Outdoors was no longer viable as previously structured and would have absorbed capital at an unsustainable rate for the foreseeable future.
“Having investigated all available options for the business, we firmly believe that this restructuring will provide Go Outdoors with a platform from which it can progress whilst remaining a member of the group.
“Most importantly, we are pleased that it will protect the maximum number of jobs possible.
“We look forward to having positive conversations with landlords and agreeing new flexible lease contracts which reflect the widely reported challenges of reduced consumer footfall.”