Sports Direct, a well-known retail giant, has been making headlines with its recent attempts to acquire struggling jeweler Links of London. This move is part of a pattern for Sports Direct, which has previously acquired House of Fraser and stakes in companies like Debenhams and MySale, resulting in financial losses for the company. Despite these setbacks, founder Mike Ashley remains determined to seek out potential acquisitions and expand the company’s portfolio.
After gaining control of Jack Wills in a recent acquisition, Sports Direct is now in the running as one of two final bidders for Links of London, a jewelry company owned by the Greek Folli Follie Group that has been experiencing financial troubles. This potential acquisition by Sports Direct comes at a crucial time, just days before the company’s annual meeting where concerns from institutional investors are expected to be raised. However, with Ashley being the majority shareholder, any pushback from investors is unlikely to lead to significant changes.
With Links of London having been in business for nearly three decades, its addition to Ashley’s brand portfolio, which already includes House of Fraser, could prove to be a valuable move. By targeting distressed brands like Links of London, Ashley is following a strategy similar to his competitor Philip Day, who owns Edinburgh Woollen Mill, Jaeger, and other well-known brands.
While Day’s business empire operates more discreetly than Ashley’s, both retailers are capitalizing on struggling brands to revitalize their businesses. As Sports Direct continues to expand and diversify its portfolio, the acquisition of Links of London could be a strategic play to strengthen the company’s position in the competitive retail market.
For more information on Sports Direct’s acquisition strategy and recent moves, click here. To learn about the challenges facing struggling retail brands like Links of London, visit this article.
