Sports Direct International, the sporting goods chain based in the United Kingdom, has acquired a majority shareholding in fashion brands USC and Cruise Clothing after agreeing a £7 million deal with the owner of both companies, Sir Tom Hunter.
A statement from Sports Direct reveals that Hunter will maintain a 20 percent stake in each business and stay on as Chairman in both cases, and he believes the acquisitions “transform the prospects” for both USC and Cruise in light of the difficult trading conditions on the high street.
The new partnership will see Hunter, who recently sold shoe specialist Office in a deal worth around £150 million, provide strategic guidance in relation to Sport Direct’s new Premium and Luxury Lifestyle division, while up to £20 million will be made available to develop operations at USC and Cruise in the years ahead.
CEO of Sports Direct Dave Forsey confirmed that USC and Cruise will remain independent of their new majority shareholder.
USC’s turnover in the 12 months to January 30th 2011 was £70 million, and the retailer currently has 38 stores across the UK, with two new outlets scheduled to open this autumn.
Cruise has ten stores in the UK, an annual turnover of around £20 million and was acquired by Hunter last December after the business fell into administration.
