Sports Direct’s (LON:SPD) founder and chief executive Mike Ashley is preparing to finish a shock deal to buy the upmarket lingerie brand, Agent Provocateur.
The acquisition of the brand would be the latest attempt to move Ashley’s business empire more upmarket. This has been a core aim of Ashley, who last year announced plans to make Sports Direct the “Selfridges of sport”, in order to attract more upmarket brands such as Nike (NYSE:NKE) and Adidas (ETR:ADS).
The lingerie brand is expected to enter administration on Thursday with Sports Direct to start the formal proceedings.
Agent Provocateur was co-founded in 1994 by Joe Corré, the son of Dame Vivienne Westwood, and his now former wife Serena Rees. Agent Provocateur is now owned by private equity firm 3i (LON:III), who have been struggling in recent years.
At the time, Rees said: “We have provoked thought and reaction; we brought lingerie to the forefront of fashion, brought sexuality out into the open and have given sex a sense of luxury.”
3i announced the sale of the brand in January, and there were 12 potential buyers to show interest but Sports Direct looks most likely. The Times reported at the weekend that Sports Direct had bid £27.5 million. Agent Provocateur are reportedly hoping for more then £30 million, to cover large debts.
Sports Direct and the private equity house Lion Capital became involved in a fierce bidding war as both attempted to get their hands on the lingerie brand.
Terra Firma boss Guy Hands also considered snapping up the struggling lingerie retailer.
“Agent Provocateur is a totally iconic British brand. Obviously, retailing is something [vice chairman] Justin [King] has extraordinary experience in. So, we wouldn’t deny we had a look at it,” he said.
The Sports brand is recovering from a string of management and governance failures and was condemned by MPs last year for its treatment of workers, where working conditions were compared to Victorian workhouses by an undercover investigation by The Guardian.