JD Sports is poised to concede defeat in its protracted battle with competition authorities over its controversial attempt to buy rival Footasylum.
The Competition and Markets Authority (CMA) has been investigating the deal since JD Sports, led by executive chairman Peter Cowgill, announced it had agreed to buy its smaller rival for £90 million in March 2019. Last month the CMA ordered JD to sell Footasylum, which operates 65 stores, on the basis that it could heavily reduce competition.
The deadline for the sports retail giant to appeal the decision to the Competition Appeal Tribunal lapsed earlier this month. JD is understood to have been considering whether to request an extension, although the chances of it doing so have diminished.
JD said the verdict “defies logic”, citing the pressure created by powerful brands Nike and Adidas, who are increasingly selling their most desirable products directly to consumers.
Separately, the CMA is investigating whether Cowgill breached competition rules after video footage obtained by The Sunday Times showed the boss of JD meeting with Footasylum boss Barry Bown in a car park near Bury.
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CMA rules prohibit the sharing of confidential information between the two companies. JD denied wrongdoing and said the meeting was arranged to discuss Bown’s future involvment in the business, a personal issue, and for Bown to reassure Cowgill that Footasylum was working hard to ensure the merger was cleared.