Sports Direct pushes for no rent on Jack Wills stores

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Sports Direct rent cuts Jack Wills landlords
Sports Direct is negotiating with Jack Wills' landlords to accept rent-free tenancy agreements
// Sports Direct demands zero rent on Jack Wills stores
// The retailer is offering landlords 5% of turnover at the majority of Jack Wills stores
// Sports Direct bought Jack Wills for £12.8m as part of a pre-pack administration deal last week

Sports Direct is negotiating with Jack Wills’ landlords to accept rent-free tenancy agreements across some of its worst-performing stores, according to Drapers.

The Mike Ashley-owned business is understood to be seeking to slash rents to zero, and is offering landlords five per cent of turnover at the majority of Jack Wills stores.

It is also agreeing to pay full rent on only eight of Jack Wills’ 100 stores, according to Drapers.

The sports goods retailer, which bought Jack Wills for £12.8 million as part of a pre-pack administration deal last week, said a handful of stores could be shut if new deals with landlords aren’t struck.

Sports Direct head of elevation Michael Murray said last week that Jack Wills has “over-extended itself” in its physical retail offer.

Following the acquisition, all 100 Jack Wills stores in the UK and Ireland, as well as the distribution centre, have been transferred to Sports Direct, along with all 1700 employees.

CBRE is advising Sports Direct on the Jack Wills property portfolio.

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