Sports Direct denies Office acquisition rumours

Mike Ashley’s Sports Direct has denied recent rumours surrounding its acquisition of the shoe retailer Office.

The sports retailer, which has over 400 stores across the UK, released a statement this morning stating: “Sport Direct International plc, the UK’s leading sports retailer, would like to address recent trade speculation regarding Office - one of the UK’s leading specialist footwear retailers.

“Nothwithstanding recent speculation, Sports Direct confirms that it is not considering an offer to acquire Office.

“Such speculation is unhelpful to the customer, staff, supplier and other stockholders of both companies, particularly as Sport Direct focuses on building brand support for the group’s premium lifestyle format - USC/Republic.

“The board believes that maintaining strong brand relationships is a strategic priority for Sports Direct, particularly given the difficulties that the competition authorities appear to have in addressing the supply issues faced the group.”

The statement comes in advance of a vote on Sports Direct’s £200m bonus scheme later this week.

As reported in The Telegraph earlier this week, shareholders are expected to reject the bonus scheme.

18 percent of Sports Direct’s 38 percent free float is expected to vote against the pay package at the shareholder meeting on 2 July.

Newcastle United owner Mike Ashley is currently the majority shareholder of Sports Direct with a 62 percent holding in the business.

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