Sports Direct said it was pulling back its offer to acquire Blacks Leisure over fears that key suppliers would not support Blacks if it took control. Sports Direct earlier this week blamed Blacks of leaking the names of suppliers that were unwilling to do business with Sports Direct. Blacks denied the allegation.
Now the retailer said in a statement Friday that it was aware certain
key suppliers would not support a takeover. As a result, it was
challenging to put a proper value on Blacks.
“Without
clarification in relation to this issue, Sports Direct has been unable
to finalize its views on the value of any potential offer,” said Sports
Direct.
Sports Direct already owns 29% stake in Blacks Leisure. Sports Direct offered a complete takeover bid of £42 million for Blacks Leisure with a timeline of April 1, 2010.
