The announcement was made by JD Sports after the appointment of Michael Magnay and Daniel Butters of Deloitte LLP as joint administrators for its Go Outdoors business.
In a statement regarding the buy back, JD Sports has cited the impact of Covid-19 closures, as well as “extremely flexible” terms on its property leases, JD Sports said that “the future viability of the business has become materially uncertain” and that enforced store closures along with upwards-only rent reviews on its property portfolio meant that Go Outdoors faced paying fixed rates at above inflation “regardless of the market rent in the location”.
“Such factors have resulted in the Board deciding that it is not in the best interests of the wider Group, and its shareholders, to provide continued financial support to Go in its existing form,” said a company statement from JD Sports on Tuesday evening.
