Sports Direct acquires stakes in UK stores
UK-based sportswear and footwear retailer Sports Direct announced on 6 July, 2011 that it has acquired an 80% stake in clothing stores West Coast Capital (USC) and Cruise Clothing for £7 million.
The retailer reported both increased sales and profits in the nine weeks to 27 March.
In contrast, USC and Cruise Clothing, owned by Scottish businessman Sir Thomas Hunter, have been struggling. Mr Hunter has been involved with USC since 2004 and purchased Edinburgh-based Cruise in December 2010 after the firm was placed in administration.
At the time he was reported to be in competition with JD Sports. Mr Hunter will retain a 20% shareholding in both USC and Cruise and will keep his position as chairman of both companies.
USC has 38 stores across the UK and its turnover in the 12 months to 30 January was £70 million. Cruise has 10 stores in the UK and an annual turnover of around £20 million.
Sports Direct will provide a facility of up to £20 million to enable the existing management teams to develop the two businesses.
