The next Signa investment with a very short term: as announced on Tuesday, René Benko’s group of companies is selling the German sporting goods chain Sportscheck after just three years. The chain goes to the British sports and fashion retailer Frasers.
Frasers announced on Tuesday that it had entered into a takeover agreement with SportScheck owner Signa Retail. The chain has an annual turnover of around 350 million euros in 34 branches in the city center. Frasers did not comment on the purchase price. British billionaire Mike Ashley is behind the company.
Dealership only acquired in 2020
SportScheck has only been part of Signa Retail, the department store division of Austrian real estate investor Rene Benko around Galeria Karstadt Kaufhof for just over three years. In 2020 he took over SportScheck from mail order company Otto. “The acquisition will allow Frasers to expand its presence in Germany, one of the largest sporting goods markets in Europe.”
Competition authorities must impose sanctions
SportScheck is a big step for Frasers on its way to becoming the largest sports retailer in Europe. The new owner promised to invest in store concepts, online business and relationships with brand manufacturers. Frasers pointed to the collaboration between sports chain Sports Direct and market leaders Nike and Adidas. Adidas boss Björn Gulden promised Frasers the support of the Franconian sporting goods giant in the statement.
The competition authorities still have to approve the takeover. Completion is expected in the first quarter of 2024, the statement said.
Signa Sports wants to shrink itself
Benko had only made the decision on Monday at the online sports store Signa Sports United, which he had brought to the New York Stock Exchange two years ago. The company announced that Signa had withdrawn its commitment for a capital injection of 150 million euros. Signa Sports wants to shrink after increasing losses and close unprofitable subsidiaries. The company includes British bicycle online retailer Wiggle and brands such as Tennis-Point, Fahrrad.de, Campz and Outfitter.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
