JD Sports files for court protection for Go Outdoors

JD Sports has filed for court protection for its subsidiary Go Outdoors to keep creditors at bay as it mulls over what to do with the outdoor apparel and equipment business, which employs 2,400.

The sports group said said a 10-day moratorium would ensure that creditors cannot take legal action without permission of the court. The business, which relies heavily on its physical stores for sales, has suffered hugely during lockdown as all 67 stores were forced to close.

The news follows reports over the weekend that JD Sports was on the brink of placing the struggling subsidiary into administration. However JD Sports said today that it was yet to hire administrators to take on the business. 

“The group can confirm that it has considered a number of strategic options for Go and that Go’s directors have lodged the notice in court,” JD Sports said in a statement.

“This notice creates an immediate moratorium around the company and its property, which lasts for 10 business days.

“During this moratorium, Go’s creditors cannot take legal action or continue with any existing legal proceedings against the company without the court’s permission.”

It added: “Administrators have not yet been appointed and the group will make no further comment at this time.”

Although Go Outdoors has faced serious challenges during the coronavirus crisis, some of its problems pre-dated the pandemic. It faced teething troubles with a new plan on how to get goods into its stores. 

In the past, brands would deliver their products straight to each individual store. The company changed the model by opening a warehouse in Cheshire in February last year, but was later forced to acknowledge that this hit the ability to replenish shops.

JD Sports bought the company for £112 million in 2016.