Frasers Group has said that it has “exercised its rights” to withdraw from its binding agreement to acquire Austrian sports retailer SportScheck after it filed for insolvency.
Frasers had initially announced the deal with SportScheck owner Signa Retail Department Store Holding in October, which would have seen it acquire 100 percent of the company’s share capital.
However, on Thursday it was revealed that, like its parent firm, SportScheck was also to file for insolvency, casting doubt over the future of the takeover.
The filing came one day after Signa announced it had fallen into administration at the Vienna Commercial Court, after struggling with what it said was “severe economic pressure” over an extended period of time.
While currently the acquisition itself has come to a stop, Frasers noted that SportScheck remained on the cards as an important party to help bolster its expansion in the EMEA region.
A press release from the group read: “While Frasers is disappointed by the insolvency of SportScheck, it continues to believe that SportScheck is an attractive asset in one of Europe’s most important markets for sports and it intends to work with the appointed preliminary insolvency administrator of SportScheck with a view to acquiring the SportScheck business/assets out of administration. Frasers remains committed to our ambition to become the leading sports retailer in EMEA.”
Upon announcing its insolvency, media speculation suggested that other investors were now showing interest in taking over SportScheck.