Sports Direct

The UK-based sporting goods retailer Sports Direct International Plc is in talks to acquire numerous gyms from LA Fitness, a person familiar with the matter revealed.

UK sportswear giant Sports Direct has purchased 12 million shares in Blacks Leisure, acquiring 28.5 per cent stake in the outdoor goods chain.

Sports Direct's recent move is seen as an effort to scupper Blacks Leisure's recovery plan as it would strengthen Sports Direct's position to vote against a rights issue due to be endorsed by the investors of Blacks Leisure.

Blacks Leisure has plans to raise 22 million pounds but it requires 75 per cent of the shareholder vote to go on with its fundraising plans.

In a rapid turn of events, Brit sportswear retailer Sports Direct on Monday bought a disputed near 30-percent stake in Blacks Leisure, in a move which could let out the outdoor goods chain's planned £22mn fundraising.

The company needed to buy the shares, which were seized in October 2009 by the administrators of collapsed bank Kaupthing Singer & Friedlander, by Wednesday, to enable it to vote against a rights issue due to be approved by Blacks shareholders.

An aggressive swoop has been made by Mike Ashley's Sports Direct on a 29% stake in Blacks Leisure, the struggling and troubled retailer that would let the group vote against a rescue package which has been proposed by the Blacks board at the annual meeting on Wednesday.

The shares, in addition to an 11% stake in the third chain, JD Sports Fashion, were taken over in Octobers by the Kaupthing Singer & Friedlander administrators, the bank which is owned by Iceland's Kaupthing.

The worst seems to be over for Sports Direct. The company that owns Sports Direct, Sports World stores and brands such as Slazenger and Dunlop, Newcastle United has forecast its annual earnings to be 'at least' £155 million. The sales figures have begun to pick up, thereby reducing the net debt to £362 million from £431.3 million. UK retail revenues climbed to £687.7 million and international retail sales went up to £63.6 million.