Sports Direct reportedly calls in receivers for USC, third of stores to close

UK sportswear giant Sports Direct has reportedly filed a notice of intention to appoint receivers for its owned fashion retailer, USC.

As such, around a third of the brand’s 90 UK-based stores will close, according to an unnamed industry source for Reuters, which initially reported the news and to whom Sports Direct declined to comment. The rest of the brand’s store fleet is to continue trading, the media outlet noted.

A formal notice of intention typically gives a company 10 days before it must be declared insolvent.

Frasers Group-owned Sports Direct acquired USC in 2011 from business tycoon Tom Hunter and ultimately went on to merge the business with Republic, which Sports Direct had acquired out of administration in 2013.

The relationship between the duo only lasted until 2015, however, when Frasers’ Mike Ashley placed USC into administration, resulting in the closure of one of its warehouses and a number of its stores, many of which had been transferred to Republic.

USC was then bought out of administration by Sports Direct holding company, Republic Retail Limited, allowing it to continue trading.