Sports Direct acquires USC and Cruise fashion chains

6th Jul 2011 07:52

Sportswear retailer Sports Direct is moving into the fashion world with the acquisition of 80% shareholdings in the Scottish fashion chains USC and Cruise Clothing for £7m.The entrepreneur Sir Tom Hunter will retain 20% holdings in the two chains and remain chairman of both companies. He will also provide "strategic guidance" to Sports Direct's newly-established "Premium and Luxury Lifestyle" division.USC has 38 shops across the UK and had sales of £70m in the year to 30 January. Cruise has 10 and annual turnover of about £20m."We are pleased to be taking this opportunity to work with Tom and his teams in the premium and luxury sector of the market," said Sports Direct chief executive Dave Forsey. "While USC and Cruise will remain independent of Sports Direct, we will support the businesses with our operational expertise."The tie-up may help Sports Direct compete with its highly successful high street rival JD Sports Fashion, whose main stores are fashion-oriented and which owns the Bank and Scotts fashion chains.