Sports Direct to sell Shirebrook assets in UK for £120m. Credit: Martin Pettitt

UK sportswear retailer Sports Direct is in advanced talks to sell property in Shirebrook for a total cash consideration of £120m ($153.01m).

The negotiations are being carried out through the wholly owned subsidiary Sportsdirect.com Retail with KWAA Logix Sportivo. The freehold property includes Units A, B, C, D and F at Brook Park East, in Shirebrook.

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Sports Direct plans to use the sale proceeds towards the working capital of the company and its group operations.

Following the completion of the transaction, Sports Direct plans to take a 15-year lease of the property in order to operate it for various operations, including distribution centres, offices and retail.

“Sports Direct plans to use the sale proceeds towards the working capital of the company and its group operations.”

In another development, Sports Direct announced plans to gain support from the creditors to challenge two company voluntary arrangement (CVA) deals filed by department store chain Debenhams.

According to The Guardian report, the sportswear retailer wants creditors to decide on the legal challenge by 6 June.

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Under the two CVAs, Debenhams plans to close at least 22 stores of the group’s 166 UK stores. The CVAs were approved by more than 95% of creditors on 9 May.

The department store chain fell into administration after it rejected Sports Direct’s proposal to underwrite a £150m equity issuance by Debenhams to its existing shareholders.

Debenhams spokesperson was quoted by the news agency as saying: “With an unprecedented turnout, the CVA proposals had overwhelming support from landlords. Landlords voted heavily in favour – well above the 75% majority required – and we reject any suggestion that the process was not run properly.

“Creditors backed the CVA as they realise this is the best way to facilitate the restructuring of the business, with a view to saving as many stores and jobs as possible.”