JD Sports Fashion has confirmed speculation that a number of strategic options for its Go Outdoors subsidiary have been considered and that the directors of Go Outdoors have filed the Notice in Court. This announcement leads to an immediate moratorium around the company and its property, which will last ten working days. During this moratorium, Go Outdoors’ creditors will not be able to take legal action against the company or continue existing legal proceedings against the company without the court’s approval. No administrators have yet been appointed and the Group will not comment further at this stage.
In the U.K., over 2,000 people work in Go Outdoor’s 67 stores according to an article in The Guardian. Go Outdoor specializes in fishing, cycling and camping gear, and relies on brick-and-mortar stores for the bulk of its sales. Like many other retailers, Go Outdoors was also hit hard by the coronavirus lockdown, having been forced to close all stores during April.
According to The Guardian, JD is likely to instruct the accountancy firm Deloitte to lead a restructuring of the company. This would most likely entail a downsizing of the chain’s total workforce of 2,300 employees.
JD Sports Fashion acquired Go Outdoors in late 2016 for £112 million (€123.5m-$139.4m), adding to its portfolio of companies, which includes other outdoor brands such as Blacks and Millets.
