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KPMG sells Sports Connection Ltd

The Joint Receivers of Sports Connection Ltd announced today the completion of the sale of part of the business and certain assets to Original Shoe Company Ltd for an undisclosed sum.
The deal preserves up to 210 jobs and secures the operation of 24 stores across Scotland and Northern Ireland. Unfortunately six stores will close and 116 employees will ultimately be made redundant.
David Hammond, managing director of Original Shoe Company commented: “Sports Connection is a fundamentally sound business which complements our existing store network and gives us access to an exciting new market. We are looking forward to providing focus to the business which we consider to be Scotland’s premier sports retail brand and to developing its future potential.”
Blair Nimmo, KPMG head of Corporate Recovery in Scotland and joint receiver said: “We are pleased to have sold Sports Connection Ltd as a going concern after only four weeks in what is a difficult retailing environment which has seen a number of closures in the sector.
“It is regrettable that a number of stores have closed but this has enabled us to protect a significant number of jobs. It is important to point out that having initially closed 13 of the loss making stores we have been able to slim down the businesses’ cost base making it a more attractive and viable proposition to potential purchasers.”
He concluded: “This has been a rather difficult negotiation and we wish David and the Original Shoe Company team every success for the future.”
Sports Connection Ltd went into receivership following a request by the company directors on 30 January 2003 having experienced financial difficulties due to poor trading performance especially over the Festive period. The business, established in 1980 as a high street sports retailer selling branded footwear and clothing, originally had 43 retail outlets across Scotland, Northern Ireland and the North of England.
The Elgin store continues to trade.

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