Sports Direct (LON: SPD) has bought Evans Cycles out of administration, in a deal which will close half of the retailer’s stores.

Mike Ashley, the Sports Direct boss, also bought House of Fraser earlier this year after the department store fell into administration.

“We are pleased to have rescued the Evans Cycles brand. However, in order to save the business, we only believe we will be able to keep 50% of stores open in the future. Unfortunately, some stores will have to close,” said Ashley.

The cycling retailer employs 1,300 people across 62 UK stores.

Evans Cycles struggled amid the difficult high street conditions, which also led to the collapse of Toys R Us and Maplins.

In the year to October 2017, the group recorded a loss of £2.5 million. The company found itself almost £6 million into the red in 2016 after sales only rose 2% to £138 million.

Matt Callaghan, who is a joint administrator and PwC partner, said: “Evans is a longstanding, well known and trusted brand with nearly 100 years of heritage in the cycling market.”

“To have managed to preserve the business and transfer all staff to the purchaser is particularly pleasing; 2018 has been a very difficult trading year for the business, in part due to the impact of the extended winter weather in the early part of the year and a lack of cash to invest in stores and develop the online platform. A combination of losses, the capital expenditure requirements and tightening credit has led to a liquidity crunch.”