Mike Ashley’s Frasers Group takes $30m hit on sale of US businesses

Mike Ashley’s retail empire is offloading its Bob’s Stores and Eastern Mountain Sports chains to GoDigital Media Group. 

The deal, first reported by The Times, represents a $30m (£23.9m) hit for Frasers just five years after it shelled out $101m (£80.4m) to rescue the two chains from bankruptcy. 

Frasers launched a strategic review of Bob’s Stores last August after Nike stopped supplying the retailer with trainers and sportswear.  

The group, which renamed itself from Sports Direct in December 2019 as part of its push to be more upmarket, said Bob’s Stores did not fit with the “elevation” strategy being led by its new chief executive Michael Murray.

Ashley’s son-in-law Murray has made it a priority to establish stronger relationships with major sports brands including Nike and Adidas in order to secure their best stock.

Earlier this month, Murray hosted Nike chief executive John Donahoe and president Heidi O’Neill at one of its new-look Sports Direct shops to show off the progress being made. 

In the past, tensions between Ashley and the sports brands have led them to prioritise supply to rivals, including JD Sports, but Frasers is banking on its “elevation” strategy to get the major players back onside.  

As well as refitting its flagship Sports Direct shops – including pouring tens of millions into locations in Oxford Street and Birmingham – Frasers has also been rolling out its luxury Flannels fascia.  

The retail group is expected to reveal its annual results in July, having delayed them for the third time in four years.

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