A company logo is seen outside a Sports Direct store in Vienna, Austria, April 28, 2016. REUTERS/Leonhard Foeger

LONDON (Reuters) - British retailer Sports Direct (SPD.L) has entered the United States market by buying 50 stores trading as Bob’s Stores and Eastern Mountain Sports for $101 million, it said on Friday.

The sportswear firm said on Thursday it had received the approval of the Delaware Bankruptcy Court to acquire certain assets of Eastern Outfitters, comprising the businesses of Bob’s Stores and Eastern Mountain Sports.

The acquired stores sell predominantly sports and casual wear, and outdoor and camping equipment and clothing.

“The acquisition is expected to complete in the first half of May 2017 and will provide Sports Direct with a footprint in U.S. bricks-and-mortar retail and a platform from which to grow U.S. on-line sales,” it said.</s>LONDON, April 21 (Reuters) - British retailer Sports Direct has entered the United States market by buying 50 stores trading as Bob's Stores and Eastern Mountain Sports for $101 million, it said on Friday.

The sportswear firm said on Thursday it had received the approval of the Delaware Bankruptcy Court to acquire certain assets of Eastern Outfitters, comprising the businesses of Bob's Stores and Eastern Mountain Sports.

The acquired stores sell predominantly sports and casual wear, and outdoor and camping equipment and clothing.

"The acquisition is expected to complete in the first half of May 2017 and will provide Sports Direct with a footprint in U.S. bricks-and-mortar retail and a platform from which to grow U.S. on-line sales," it said. (Reporting by James Davey, editing by David Evans)</s>After their parent company went bankrupt twice in one year, sporting goods chains Bob’s and Eastern Mountain Sports have a new owner: Sports Direct, which already operates hundreds of stores in Europe and has had its eye on U.S. expansion for a while.

If the company manages to not become insolvent within ten months, it will be an improvement over the company’s past leadership and financial position.

The UK-based retailer, which is paying $101 million to acquire the remaining Eastern Mountain and Bob’s locations, also owns a number of apparel and sporting goods brands, including Everlast, Slazenger, and Kangol.

However, Reuters reports that analysts are critical of this acquisition, noting that Sports Direct’s stock price has been falling in recent months.

“What is not required, in our view, is a major, and not inexpensive, distraction, 3,000 miles away,” argued analysts at Peel Hunt.

Sports Direct has been eager to get into the United States market for a while, considering teaming up with the New York-based chain Modell’s to take over a number of Sports authority stores when that chain closed, keeping them running under the Sports authority brand name. That transaction didn’t work out, but Sports Direct clearly still dreamed of coming to America. Now has been anointed the auction winner in this bankruptcy case, and will run its new 50 stores without an American co-owner.</s>Sportswear retailer Sports Direct has entered the US market by buying 50 stores trading as Bob's Stores and Eastern Mountain Sports at a cost of $101m.

Sports Direct, founded and controlled by chief executive Mike Ashley, said the acquired stores sell predominantly sports and casual wear, and outdoor and camping equipment and clothing.

"The acquisition is expected to complete in the first half of May 2017 and will provide Sports Direct with a footprint in US bricks-and-mortar retail and a platform from which to grow US online sales," it said.

Sports Direct purchased the stores through the bankruptcy process of Eastern Outfitters, the parent company of Bob's Stores and Eastern Mountain Sports.

The UK company received approval for the deal from the Delaware Bankruptcy Court this week.

The $101m cost comprises loans advanced by Sports Direct to Eastern Outfitters before and as part of the Chapter 11 bankruptcy process, and purchases of the US firm's debt.

In the financial period to January 28, 2017, the acquired businesses made a pretax net operating loss of $26m.

Sports Direct has had a disastrous couple of years.

Last year, British politicians condemned it for "Victorian" working conditions, investors and media criticised its corporate governance and trading was poor, with a series of profit warnings.

It warned in March that the devaluation of the euro against the dollar would dent its gross margin.

The US sporting goods sector is being tested by the advent of internet shopping and discount chains.

Sports Authority, speciality golf retailer Golfsmith International Holdings and sporting goods manufacturer Performance Sports Group are among companies that filed for bankruptcy in 2016.</s>[LONDON] British sportswear retailer Sports Direct has entered the US market by buying 50 stores trading as Bob's Stores and Eastern Mountain Sports at a cost of US$101 million, it said on Friday.

Sports Direct, founded and controlled by chief executive Mike Ashley, said the acquired stores sell predominantly sports and casual wear, and outdoor and camping equipment and clothing.

"The acquisition is expected to complete in the first half of May 2017 and will provide Sports Direct with a footprint in US bricks-and-mortar retail and a platform from which to grow US online sales," it said.

Sports Direct purchased the stores through the bankruptcy process of Eastern Outfitters, the parent company of Bob's Stores and Eastern Mountain Sports.

The British company received approval for the deal from the Delaware Bankruptcy Court on Thursday.

The US$101 million cost comprises loans advanced by Sports Direct to Eastern Outfitters before and as part of the Chapter 11 bankruptcy process, and purchases of the US firm's debt.

In the financial period to Jan 28, 2017, the acquired businesses made a pretax net operating loss of US$26 million.

Sports Direct has had a disastrous couple of years. Last year, British lawmakers condemned it for "Victorian" working conditions, investors and media criticised its corporate governance and trading was poor, with a series of profit warnings.

It warned in March that the devaluation of the euro against the US dollar would dent its gross margin.

Sports Direct's shares, down 21 per cent over the last year, were up 0.4 per cent at 316.5 pence at 0713 GMT, valuing the business at £1.76 billion (S$3.151 billion).

The US sporting goods sector is being tested by the advent of internet shopping and discount chains. Sports Authority, speciality golf retailer Golfsmith International Holdings and sporting goods manufacturer Performance Sports Group are among companies that filed for bankruptcy in 2016.</s>Just days after Sports Direct took a 7.9 percent stake in Finish Line, the U.K.-based retailer took a more aggressive step to become competitive in the U.S. market.

In a move that was widely anticipated, Sports Direct said on Friday it was granted approval by the Delaware Bankruptcy Court to buy two retailers out of bankruptcy: Eastern Mountain Sports and Bob’s Stores, both owned by Eastern Outfitters LLC.

Sports Direct said it would pay a total of $101 million in cash for the deal, expected to close next month.

The company said the acquisition of about 50 stores would “provide Sports Direct with a footprint in U.S. bricks-and-mortar retail and a platform from which to grow U.S. online sales.”

Earlier this week the retail giant took a significant stake in Finish Line that had at least one market watcher speculating a takeover was on the horizon.

“It appears to us that Sports Direct is actively making an effort to purchase Finish Line, despite the fact that no mention of an active position was mentioned in the [SEC] filing,” Susquehanna Financial Group LLP analyst Sam Poser wrote Monday. “The purchase of all of Finish Line would provide leverage for Sports Direct’s total operation as well as provide better vendor terms from the likes of Nike, Adidas, Under Armour and others.”

Sports Direct, which was founded in 1982 by British billionaire Mike Ashley and now has 455 sports stores in the U.K., has rapidly expanded its interests in the American market.

In January, the British retailer acquired stakes in Dick’s Sporting Goods and boosted its holdings in Iconix Brand Group.

Before that, it had purchased 4.3 million shares in Iconix, or 9 percent of the troubled firm.</s>Mike Ashley's Sports Direct has made its first move into the US retail market after swooping for around 50 stores belonging to two outdoor chains in a $101million (£78m) debt deal.

The billionaire tycoon has snapped up the Bob's Stores and Eastern Mountain Sports chains after buying up the debts of parent company, troubled retailer Eastern Outfitters, which filed for Chapter 11 bankruptcy protection in February.

The deal will see Ashley take charge of the 50 US based stores under the Bob's Stores and Eastern Mountain Sports trading names, which sell clothing, sportswear and camping equipment, after being given the green light by the Delaware Bankruptcy Court.

Bob’s Stores is a discount chain, while Eastern Mountain Sports is an outdoor retailer.

Sports Direct said the acquisition, which is expected to complete in the first half of next month, will provide it with a ‘footprint in US bricks-and-mortar retail and a platform from which to grow US online sales’.

Eastern Outfitters, which has about 90 shops, booked a pre-tax net operating loss of $26m (£20m) in the year to January 28, however Ashley will gain $126m (£98m) in assets from the deal.

Ashley has also added a 7.9 per cent stake in athletic apparel store Finish Line to his growing list of brands.

His recent buying spree has extended into women's underwear with the purchase of Agent Provocateur. That deal drew an angry response from the brand's founder, Joe Corre, who said the Sports Direct bid was not the most valuable on offer.

Ashley, who also owns Newcastle United FC, has courted controversy recently, coming under fire for presiding over ‘Victorian’ working conditions at Sports Direct's warehouse in Shirebrook, Derbyshire.

The retailer has since moved to elect an employee to attend board meetings.</s>Sports Direct has drawn fire from analysts after it entered the US market by buying two loss-making chains for $101m (£78m).

The retailer said on Friday it had received approval from Delaware bankruptcy court to buy 50 stores trading as Bob’s Stores and Eastern Mountain Sports through the bankruptcy process of Eastern Outfitters, the chains’ parent company.

Sports Direct, majority owned by its chief executive Mike Ashley, is under pressure after a Guardian investigation in 2015 into its working conditions and investor criticism of its corporate governance standards.

Analysts said the US acquisition would distract the company from efforts to lift its UK performance.

“We find the timing extraordinary,” analysts at stockbroker Peel Hunt wrote in a research note, downgrading their investment stance to “add” from “buy”. “What is not required, in our view, is a major, and not inexpensive, distraction, 3,000 miles away.”

Analysts at Jefferies, who have a “hold” stance, also questioned the timing.

“The incremental challenge of breaking into the US coincides with the need for a drastic UK repositioning and for European stabilisation. This may be a step too far,” they said.

Sports Direct issued a profit warning in December after a slide in sterling’s value made it more costly for the firm to source its branded goods from Asia. Last month, it said the devaluation of the euro against the dollar would also hit profit margins.

The company has also moved to address corporate governance concerns, announcing this month that it has elected an employee to attend its board meetings.

Sports Direct said it had expanded its reach in the US by acquiring the stores, which sell sports and casual wear predominantly, as well as outdoor and camping equipment and clothing.

“The acquisition is expected to complete in the first half of May 2017 and will provide Sports Direct with a footprint in US bricks-and-mortar retail and a platform from which to grow US online sales,” the company said.

The US sporting goods sector is being tested by the expansion of online shopping and discount chains. Several retailers filed for bankruptcy in 2016, including Sports Authority, speciality golf retailer Golfsmith International Holdings and sports goods manufacturer Performance Sports Group.

The travails of sports shops reflect the American retail sector as a whole, which has been hit by tens of thousands of redundancies in recent months due to online competition.</s>Mike Ashley's Sports Direct has seized control of US retailers Bob's Stores and Eastern Mountain Sports in a 101 million US dollars (£78 million) debt deal.

The billionaire tycoon has acquired the chains by buying up the debts of their parent firm Eastern Outfitters, which filed for Chapter 11 bankruptcy protection in February.

The deal will see Mr Ashley take charge of around 50 retail stores in the US under the Bob's Stores and Eastern Mountain Sports fascias, which sell clothing, sportswear and camping equipment.

Sports Direct said the acquisition will provide it with a "footprint in US bricks-and-mortar retail and a platform from which to grow US online sales".

Eastern Outfitters booked a pre-tax net operating loss of 26 million US dollars (£20 million) in the year to January 28, although the gross assets of the businesses being acquired stands at 126 million US dollars (£98 million).

Mr Ashley, who also owns Newcastle United FC, has courted controversy recently, coming under fire for presiding over ''Victorian'' working conditions at Sports Direct's warehouse in Shirebrook, Derbyshire.

The retailer has since moved to elect an employee to attend board meetings.</s>Sports Direct has managed to buy the US sports clothing and outdoor equipment chains Bob’s Stores and Eastern Mountain Sports in a huge $101m (£79m) deal.

This means Sports Direct now has hold of 50 stores selling sports and casual wear, as well as camping equipment.

The acquisition is expected to be completed in the first half of May, it will also provide Sports Direct with a “footprint” in US bricks-and-mortar retail, giving it a “platform from which to grow US online sales”.

In the year to January 28, Bob’s and Eastern Outfitters managed to see losses of $26m. The assets of the firms amounted to $126m.

Nicholas Hyett, equity analyst, Hargreaves Lansdown said Sports Direct had managed to pick up a “bargain out of bankruptcy proceedings”.

He also added that unlike some of the company’s previous investments the “rationale for today’s deal is pretty clear. Eastern Mountain will serve as a starter pack, providing the group with feet on the ground from which to launch a wider US strategy, a strategy that looks set to be led by online sales.”
British sports retailer Sports Direct agreed to acquire the American retail chains Bob's Stores and Eastern Mountain Sports for $101 million out of bankruptcy.