Sports Direct acquires Agent Provocateur for £31m

Lingerie firm Agent Provocateur has been bought by Mike Ashley's Sports Direct for £31m after it fell into administration on Thursday.

The company was previously owned by private equity firm 3i, but struggled to compete in the luxury retail sector before being bought over by Sports Direct.

The agreement was reached for a so-called "pre-pack" deal, in which a prospective buyer paid for the assets of the company but does not take control of its liabilities.

Agent Provocateur currently employs around 600 people in the UK in 11 stores.

Ashley has taken steps to diversify his business interests in recent times as Sports Direct became entwined in a series of poor working conditions scandals amid falling sales. He has purchased stakes in the likes of House of Fraser and Debenhams in order to move the business to a more upmarket consumer base.

Another private equity firm, Lion Capital, had been engaged in a bidding war with Ashley's company but Sports Direct for the acquisition of the lingerie firm.

"Accounting issues" were found by 3i after an investigation by KPMG in November, which also led to the revaluation of the company by about £39m.