Sports Direct adds luxury brand arm

Retailer Sports Direct today revealed a move into the luxury brand market after buying two chains from Scottish retail entrepreneur Sir Tom Hunter for £7m.

Sports Direct, controlled by Newcastle United owner Mike Ashley, will take 80 per cent stakes in USC and Cruise Clothing, both of which specialise in premium brands such as Diesel, Police, Ugg and Adidas.

Sir Tom Hunter, who featured on the Sunday Times Rich List and has a rumoured net worth of more than a £1bn, will keep a 20 per cent shareholding in the two firms.

USC currently has 38 UK stores and generated sales of £70m in the year to end January, while Cruise has ten stores and has an annual turnover of about £20m.