Sports Direct has lost nearly £500m on a series of retail punts
theguardian | April 09, 2019
Sports Direct’s write-off of at least £150m of investment in Debenhams shares is part of a mixed history of investing in the stock market.The group partly sees its “strategic investments” as a tool to gain influence over the boards of companies it is interested in working more closely with. Although Sports Direct made money on these stakes in some cases, including rival JD Sports, it has lost close to £500m on a string of ill-starred punts. The US-listed owner of 28 brands including Lee Cooper, Umbro and Pony has proved a big loser for Sports Direct. The share price has dived since February 2017 after the exit of its chief executive, a legal battle relating to the Rocawear brand founded by the rapper Jay-Z and concerns about supply deals with US retailers such as Target and Sears.