Frasers reviews Bob's Stores after Nike cuts ties

Frasers Group is reviewing the future of its Bob's Stores business in the US after Nike decided to stop supplying the chain.

Frasers, controlled by Mike Ashley, said Nike had told it the sportswear company would not sell its products through Bob's Stores' 24 shops from the end of March 2021.

The company, formerly known as Sports Direct, said Bob's Stores was one of several US retailers Nike has cut ties with in recent days. Frasers said the decision did not affect any of the revamped stores that are part of the company's strategy to move upmarket.

"While Nike's decision does not directly affect the rest of the Frasers Group, Bob's Stores will immediately be put under strategic review," the company said. "Frasers Group continues to invest in its store portfolio and brand relationships and remains committed to its elevation strategy."

Frasers bought Bob's Stores in 2017 to enter the US market in a $101m (£77m) acquisition of 50 stores owned by Eastern Outfitters out of bankruptcy. The stores also included outlets under the Eastern Mountain Sports brand.

Frasers shares fell 2.7% to 341.5p at 08:04 BST.