Mike Ashley loses bid for Elverys Sport to management MBO

Mike Ashley, owner of Newcastle United football club and sportswear chain

Sports Direct, has lost his bid for Irish sportswear chain Elverys.

Ashley, who held a control vote as the owner of Sports Direct, which owns a 50 percent stake in Heatons the Irish department store chain, wanted to purchase Elverys in the hopes that an acquisition would help ease restrictions on the sales of its replica local rugby kit by Adidas.

A deal had been previously made with the management team, but after Ashley submitted a higher deal, Ireland's high court appointed an examiner to preside over the legal process of the sale of Elverys. Now, the management of Elverys is now set to acquire the company from examinership.

On Monday accountant and appointed examiner Simon Coyle of Mazars ruled that a management-led buyout should take over the failing Elverys sportswear chain in a decision that is thought to secure the future employment of the chains plus 700 employees. The management buyout team (MBO) is led by managing director Patrick Rowland, who has secured new investment through corporate finance house CapNua and AIB.

Elverys has been on the market for a number of months as owners John and James Staunton, attempted to settle debts with Ireland's National Asset Management Agency.