Mike Ashley’s Frasers Group will use the newly purchased Dave Whelan Sports gyms to expand its Everlast fitness brand, it said on Monday.
Frasers, which was formerly named Sports Direct after the most successful part of the business, will pay £37m in cash for some parts of DW Sports, but it will not own the brand of the sports retail and gyms business, which collapsed at the start of the month.
It is part of Ashley’s strategy to move the company more upmarket – a so-called “elevation” strategy – having initially built the business around cheap sports gear at Sports Direct.
Sports Direct said: “The transaction compliments [sic] the existing gym and fitness club portfolio within the company’s group and is consistent with the group’s elevation strategy. Frasers Group looks forward to elevating the gym and fitness assets acquired pursuant to the transaction under the group’s existing iconic Everlast brand, and is also pleased to have saved a number of jobs.”
The final price could rise by £6.9m depending on how many leaseholds the company ends up buying.