Sports Direct acquires Evans Cycles from administrators

Sports Direct will close half the branches bike retailer Evans Cycles after acquiring the chain for an undisclosed sum on Tuesday.

Chief executive Mike Ashley told investors the FTSE 250-listed outfit had "rescued the Evans Cycles brand" from its administrators.

However, Ashley noted that in order to save the business, he believes Sports Direct will likely be able to keep just 50% of Evans' stores open moving forward.

"Unfortunately some stores will have to close," he said.

In 2015, Evans was offloaded to private equity outfit ECI Partners for a total of £75m, however, in recent months it has been working hard to find new ownership and a much needed £10m cash injection.

Evans was said to have been fielding offers from rivals Halfords, JD Sports and several others, but Ashley, who recently bought House of Fraser out of administration for £90m, came out on top.

James Keany at CBRE, who has been retained on all property related aspects of the deal, said Sports Direct would make direct contact with landlords "over the next few days" in order to discuss the future of individual stores."

As of 1640 BST, Sports Direct shares had picked up 1.29% to 321p.