JD Sports sells Bank Fashion business
JD Sports Fashion has sold its Bank Fashion business to a subsidiary of Hilco Capital, which the retailer said should result in a substantial recovery of its inter-company loan.
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It said the exact amount would be confirmed at a later date.
Executive chairman Peter Cowgill said: "We have decided that we must prioritise future investment in the Sports fascias and consequently we believe that the sale of Bank is in the best interests of the group. We shall continue to support the broadest possible range of fashion brands within the group."
Bank Fashion recorded a loss after exceptionals and before tax of £8.1m in the year ended 1 February, at which point it had gross assets of £51.7m. The overall group net assets writedown as a result of the sale will not be material to the group net assets position.
"The remainder of the group's businesses have continued to trade in line with our expectations during the second half of our financial year and, subject to a satisfactory performance against strong comparatives in the key Christmas trading period, the group remains well positioned," JD added.