Mike Ashley in pole position to buy Sofa.com as ScS ends talks

Mike Ashley ScS
// ScS no long in the running to buy rival Sofa.com
// Paves the way for Mike Ashley to take over the furniture retailer
// Sofa.com’s sale had attracted the attention of ScS and Ashley

ScS has said it was “no longer in discussions” with Sofa.com about an acquisition deal, effectively placing Mike Ashley in pole position to takeover it instead.

Earlier this week it had been revealed that ScS and Mike Ashley had both expressed interest in taking over Sofa.com, which was put up for sale last month.

However, in a stock market update ScS said: “The group confirms that ScS Group plc is no longer in discussions regarding a potential acquisition of the business and assets of Sofa.com.”

Sofa.com’s sale is being handled by KPMG.

Ashley – who founded and has a majority stake in Sports Direct – reportedly approved a multi-million pound bid for Sofa.com, according to Sky News.

Sofa.com has concessions in House of Fraser, which Sports Direct bought out of administration in August last year.

ScS also has concessions in department store chain, but after they delivered lower sales and earnings in October it announced it would withdraw from seven House of Fraser stores.

Sofa.com subsequently revealed it would be taking the place of ScS across its House of Fraser concessions.

Ashley’s expression of interest in buying Sofa.com marks the third business he is trying to acquire since the start of the year, alongside attempts to buy HMV and Patisserie Valerie out of administration.

In addition, given he has a significant 29.7 per cent stake in Debenhams, he played a key role in ousting Debenhams chairman Sir Ian Cheshire off the board earlier this month.

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