New opportunity. Sportscheck CEO Matthias Röcker admitted the situation was “bitter” but despite this also admitted to seeing the situation as an “opportunity”.
(12-1-2023). The purchase agreement for German sports store chain Sportscheck from Frasers Group could become a dead letter after Sportscheck is declared bankrupt.
Frasers Group, a famous British sports fashion retailer, announced that it has decided to use its right to withdraw from the agreement with Signa Retail Department Store Holding, to purchase the German sports store chain Sportscheck, which was revealed in the middle of last year. Last October, it was subject to merger control clearance.
The reason for the withdrawal of the Fraser Group lies in the declaration of bankruptcy of the German chain. Although Sportscheck paid out €350 million in its last financial year, it was also immersed in a spiral of red numbers that ended up landing it in the Munich insolvency court.
Despite its withdrawal from the initial agreement with Signa Retail Department Store Holding, Frasers Group said it still believes SportScheck is an “attractive asset” and that it intends to work with an appointed primary insolvency practitioner with a view to acquiring the chain.
For his part, Sportscheck CEO Matthias Röcker admitted that the situation was “bitter” but despite that he also admitted to seeing the situation as an “opportunity.”
New sales process
In this sense, other voices confirm that the withdrawal of the Fraser Group “opens up a new marketing and acquisition process, and there are already other potential investors who have expressed interest in acquiring Sport Chic.”
“All this gives Sportscheck the option to strengthen the company with its contractors and creditors in a sustainable way,” believes Matthias Röcker, CEO of the chain.
Everything is under control’
Rocker believes that “the target will now focus on strategic direction and business development in the restructuring process.”
For now, the goal is for Sportscheck’s 34 stores and online store to remain open and operating normally.
Sportscheck confirms that the closure of the recovery and investment process is “orderly and realistic” and they expect everything to be resolved “at the latest, at the end of the first quarter of 2024.”