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Published
Dec 11, 2015
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​Sports Direct transferred USC prime assets before collapse

Published
Dec 11, 2015

British sports giant Sports Direct transferred prime assets of its struggling subsidiary USC fashion in the weeks before its collapse, found an investigation by The Guardian published on Friday.



The lease ownership of six USC stores, which were performing well, was moved to another wholly owned Sports Direct subsidiary, Republic, to avoid the inclusion of the stores into the legal process known as administration. The stores in question are in Livingston, West Lothian, Aberdeen, Doncaster, Dundee, Edinburgh and Hull.

Meanwhile, the ownership of USC’s brand changed hands on December 19th, 2014, less than a month before USC was taken under the management of a court appointed administrator, revealed The Guardian.

In October, David Forsey, CEO of Sports Direct was charged with criminal offence for with failing to notify the authorities of a lay-off of warehouse staff in Scotland after the fashion retailer’s collapse. Around 200 staff members were given only 15 minutes’ notice that they were being fired.

Later that month Forsey pleaded not guilty at Chersetfield magistrates court. The case was adjourned until March 14 for a three-day hearing.

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