JD Sports announced its recent disposal of Footasylum Limited and its subsidiaries.
The sportswear retailer announced they will sell Footasylum to German asset management firm Aurelius Group for a value of £37.5 million.
The sale was agreed in accordance by the Competition and Markets Authority on the 14th of January 2022. Furthermore, Britain’s competition regulator last year ordered JD Sports to sell Footasylum after revealing the combination could lead to a “worse deal” for consumers.
As a result, the sale is expected to complete in the coming weeks.
“I would like to sincerely thank the teams at AURELIUS and Footasylum who worked collaboratively with the CMA to agree this transaction,” said Interim CEO of JD, Kath Smith. “We wish both parties every success for the future.”
JD Sports bought Footasylum back in 2019 for £86 million as it attempted to dominate the sportswear market. It seems that didn’t quite work out for the company.
On to the next!
Semrush data shows the decline in organic and paid traffic for JD Sports in 2022. The soaring inflation and macroeconomic impacts may have caused a decline in disposable income and the retail markets may have been negatively impacted.
Meanwhile, JD Sport’s share price tells a similar story. The decline in its shares began early this year. In addition, with inflation showing no signs of easing, the retail sector may see continued losses.