Sports Direct fishes out Hot Tuna bid
Retailer Sports Direct is set to buy surfwear brand Hot Tuna for £950,000 just days after failing to acquire Blacks Leisure.
The Mansfield-based company said it will purchase the loss-making business through its subsidiary Brands Holdings.
Hot Tuna has offices in London and Australia. It described year-end sales for June 2011 as "disappointing", having posted a loss of £860,000. Sales amounted to just £210,000.
"Following completion, the board will focus on identifying attractive acquisition opportunities for the company," said Hot Tuna. "In addition, the board will look to satisfy the group's outstanding liabilities following completion."
Once the deal has completed, Hot Tuna has proposed that Francis Ball, Geoffrey O'Connell and Oscar Verden resign from the board, while Marcus Yeoman will remain a director.
Shareholders will vote on the deal at a meeting on 6 February.
Last week (10 January), Sports Direct hit out at rival company JD Sports, which successfully bought the assets of embattled camping retailer Blacks Leisure from administration in a deal worth £20m.
Sports Direct, whose owner Mike Ashley is Northampton-based Blacks' main shareholder, argued that its own bid for the company had been unfairly overlooked.
