The JD Sports brand, Go Outdoors, is expected to fall into administration.
As the Coronavirus pandemic is putting pressure on the UK high street, the brand has suffered from closed stores and a lack of online demand.
JD Sports bought Go Outdoors in a £112m deal in 2016. The brand has 67 stores and has over 2,000 employees.
The Manchester-based retail group specialises in fishing, cycling and camping gear and has not yet commented on the news, reported first today by Sky News.
JD Sports is expected to publish full-year results in July. It’s Go Outdoor brand was struggling before the pandemic. In August 2019, it posted a loss of around £40m.
Go Outdoors will be the most recent of a string of companies that have been hit by the Coronavirus pandemic. Since the crisis hit the UK, retailers including Laura Ashley, Debenhams, Oasis and Warehouse have called in administrators and thousands of high street jobs have been axed.
Whilst the high street reopened earlier this month, compared to the same period in 2019 footfall was down 45.3% according to retail analyst firm Springboard.
Although shops are reopening, our changed shopping habits will affect the high street for months to come.
“Consumers have changed their spending habits, and will be increasingly used to going without much of their discretionary shopping,” said Duncan Brewer, head of the UK retail and consumer team at consultants Oliver Wyman.
“With the inevitable recession coming, it’s likely that many will continue to be careful with spending, even if they are comfortable shopping in the first place,” he added.
The JD Sports (LON: JD) share price is trading -1.89% at 634.80 (0941GMT).
