German sporting goods retailer SportScheck, part of the Signa property group, filed for insolvency in a Munich court on November 30, the DPA news agency and other German media outlets reported.
The court was not immediately available for comment, and SportScheck was unreachable.
Signa declared insolvency on Wednesday after last-ditch attempts to secure new funding failed, making it the biggest casualty of a property crash in Europe driven by a sharp rise in interest rates and building costs, according to Reuters.
UK-based Frasers Group plc, the parent of the Sports Direct retailer, said in October that it had entered into a binding agreement with Signa Retail Department Store Holding GmbH to acquire SportScheck. The transaction, subject to merger control clearance, was to be effected by acquiring 100 percent of the share capital in SportScheck GmbH.
As SportScheck GmbH has filed for insolvency, Frasers has exercised its rights under the original agreement to withdraw from the deal.
While Frasers said it is disappointed by the insolvency of SportScheck, the company continues to believe that SportScheck is “an attractive asset in one of Europe’s most important markets for sports, and it intends to work with the appointed preliminary insolvency administrator of SportScheck with a view to acquiring the SportScheck business/assets out of administration.”
Frasers said it remains committed to its ambition to become the leading sports retailer in EMEA.