JD SPORTS Fashion has given up on loss-making clothing chain Bank after it agreed a deal to offload the business to a retail turnaround firm.
Bury-based JD, which has owned the 88-strong retail chain since 2007, wants to prioritise investment on its sports retail operation.
The company has not disclosed the terms of the transaction with HMV owner Hilco, although it expects the substantial recovery of an inter-company loan.
JD’s fashion division, which includes the more successful Scotts brand, recently slumped to a half-year loss of £8.2 million despite continued efforts to revive Bank, including through the appointment of a new management team.
Bank was founded by Andy Scott – a former Macclesfield Town footballer – in 1994 and largely sells branded fashion items aimed at the youth market.
JD bought the chain from private equity owners Phoenix Equity Partners and management for £18.5 million. Its outdoor arm, which comprises the Blacks and Millets chains, was bought out of administration in 2012.
JD’s executive chairman Peter Cowgill said: “We believe that the sale of Bank is in the best interests of the group. We shall continue to support the range of fashion brands within the group.”
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