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JD Sports CEO hits back over car park meeting with Footasylum boss
8th Nov 2021 07:13
(Sharecast News) - JD Sports Fashion on Monday hit back at reports over a meeting between the retailer's boss Peter Cowgill and Footasylum chief Barry Brown in an industrial estate car park, leading to claims they may have broken UK takeover rules.
The duo were filmed at the weekend sitting in a black Mercedes at Bridge Hall industrial park in July, leading to a probe by the Competition and Markets Authority (CMA) into the meeting, separate to its review of JD Sport's £90m takeover of its smaller rival.
"Peter Cowgill has known Barry Bown on a business and personal basis for over 25 years. As a result, it is not unusual, or in any way suspicious or illegitimate, for them to meet from time to time, including in relation to the ongoing review by the CMA of JD's acquisition of Footasylum Limited," the company said in a statement.
In the video, which was seen by The Sunday Times newspaper, they were joined in the car by JD's general counsel, Siobhan Mawdsley, who later left. The investigation comes as the CMA is still examining JD's 2019 offer to buy out Footasylum.
"The Sunday Times omitted to report on the positive obligation that JD has under the terms of the Interim Enforcement Order to take all reasonable steps to encourage key staff of the Footasylum business (which includes Barry Bown) to remain with the business," JD said in a statement on Monday.
It added that the CMA had already been "fully apprised" of the content of the meeting and the reasons for it and "firmly believes that its actions in participating in this meeting do not amount to wrongdoing".
"It is disappointing that the Sunday Times has not reported in a more balanced way on the highly irregular and potentially illegal covert surveillance undertaken by a third party for their own interests. JD hopes that a regulator, tasked with acting in the wider public interest, is able to more critically regard the actions of the third party for what they are."
The CMA ordered JD to sell Footasylum last week, after a two-and-a-half-year review. It said allowing JD, which has 405 UK stores, to take over Footasylum, which has 65, "could lead to a substantial reduction in competition".
The duo were filmed at the weekend sitting in a black Mercedes at Bridge Hall industrial park in July, leading to a probe by the Competition and Markets Authority (CMA) into the meeting, separate to its review of JD Sport's £90m takeover of its smaller rival.
"Peter Cowgill has known Barry Bown on a business and personal basis for over 25 years. As a result, it is not unusual, or in any way suspicious or illegitimate, for them to meet from time to time, including in relation to the ongoing review by the CMA of JD's acquisition of Footasylum Limited," the company said in a statement.
In the video, which was seen by The Sunday Times newspaper, they were joined in the car by JD's general counsel, Siobhan Mawdsley, who later left. The investigation comes as the CMA is still examining JD's 2019 offer to buy out Footasylum.
"The Sunday Times omitted to report on the positive obligation that JD has under the terms of the Interim Enforcement Order to take all reasonable steps to encourage key staff of the Footasylum business (which includes Barry Bown) to remain with the business," JD said in a statement on Monday.
It added that the CMA had already been "fully apprised" of the content of the meeting and the reasons for it and "firmly believes that its actions in participating in this meeting do not amount to wrongdoing".
"It is disappointing that the Sunday Times has not reported in a more balanced way on the highly irregular and potentially illegal covert surveillance undertaken by a third party for their own interests. JD hopes that a regulator, tasked with acting in the wider public interest, is able to more critically regard the actions of the third party for what they are."
The CMA ordered JD to sell Footasylum last week, after a two-and-a-half-year review. It said allowing JD, which has 405 UK stores, to take over Footasylum, which has 65, "could lead to a substantial reduction in competition".