Sportswear and equipment retailer Sports Direct has acquired a majority share in two fashion brands.
The company paid £7m for an 80 per cent stake in USC and Cruise Clothing, both owned by retail tycoon Sir Tom Hunter. According to a statement released by Sports Direct this morning, Sir Tom will continue as chairman of both companies and will retain a 20 per cent stake.
Branded fashion chain USC currently has 38 stores across the UK, while Cruise, which specialises in luxury fashion items, has 10. In the year to January 30, Cruise posted a turnover of £70m, while Cruise brought in £20m over the same period.
Noting the difficult economic environment on the high street, Sir Tom said today's deal would "transform the prospects" of USC and Cruise, as well as the companies' employees.
He said: "I've known the Sports Direct team for many years and have huge respect for their talent and look forward to co-investing with them. Sports Direct has a truly exceptional track record in building partnerships with its customers and its staff."
