In the News
PESTLE in Action | Competition Regulators Force JD Sports to Sell Footasylum at a Loss
1st August 2022
A topical example here of how regulation is forcing a business to reverse an attempt at external growth.
As the BBC reports here, JD Sports is selling Footasylum, but at a significant loss compared with what it originally paid.
In 2019 JD Sports completed the takeover of competitor retailer Footasylum for £90million.
Three years later it is selling the business for £37million.
Why the forced, quick sale at what appears to be a discount price?
Because the Competition and Markets Authority (CMA) - the organisation that regulates competition in the UK - decided that the takeover of Footasylum could lead to less choice and a "worse deal" for customers.
So JD Sports has been forced to sell the business.
The buyer, a venture capital fund with other retail investments, looks like it may have bought Footasylum at a bargain price.
Jim Riley
Jim co-founded tutor2u alongside his twin brother Geoff! Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs.
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