After putting it in administration with Deloitte earlier this week, JD Sports has bought back GoOutdoors, the company behind Calibre Bikes, for £56.5 million.
The outdoors brand, which also sells Raleigh and Diamondback bikes, was put into administration yesterday but was reacquired soon after by JD Sports via a subsidiary that was incorporated on June 10, JD Newco 1.
JD Sports initially bought GoOutdoors for £112 million in 2016 and has said the outdoors retailer will now need to be "fundamentally restructured" to become a viable part of the group. This may sound like bad news for the staff but JD Sports has currently taken out a 12-month license on all 67 GoOutdoor stores and says it intends to "preserve as many jobs as possible" among the 2,400 staff.
Peter Cowgill, executive chairman at JD Sports, said: "As a consequence of Covid-19, Go Outdoors was no longer viable as previously structured and would have absorbed capital at an unsustainable rate for the foreseeable future. Having investigated all available options for the business, we firmly believe that this restructuring will provide Go Outdoors with a platform from which it can progress whilst remaining a member of the group. Most importantly, we are pleased that it will protect the maximum number of jobs possible. We look forward to having positive conversations with landlords and agreeing new flexible lease contracts which reflect the widely reported challenges of reduced consumer footfall."
Michael Magnay, joint administrator, said: "Like many high street retailers, Go Outdoors Ltd has been seeking to address a number of underlying business challenges in the current UK retail environment, which have been exacerbated by the impact of Covid-19. This successful sale will provide Go Outdoors with an opportunity to restructure its business to secure its future for the long term. I'm particularly pleased that we have been able to secure the employment of all the Company's workforce, and we'd like to thank all employees and key stakeholders for their support throughout this process."
So Calibre's future seems safe with Go Outdoors for now however we will keep you up to date with any further news that might impact the budget bike brand.