Sports Direct agrees China tie-up

Sports Direct billionaire Mike Ashley is expanding his empire into China under a deal announced today to sell the company’s brands in the Far East.

The firm has agreed a strategic alliance with Shenzhen-based ITAT Group which will see brands such as Slazenger, Dunlop, Karrimor and Lonsdale sold at the Chinese firm’s stores.

The deal will see Sports Direct brands sold in a “store-within-a-store” concept at ITAT’s 120 Super Club outlets.

Sports Direct, which owns the Sports World and Lillywhites retail chains, is investing £20m (26.8m) to re-fit the branches and to support running costs.

Dave Forsey, Sports Direct chief executive, said: “We are delighted to be announcing our agreement to work with ITAT in China.

“This agreement offers us an ideal opportunity to access ITAT’s fast-growing store network, and through it, to be able to offer our brands to the Chinese consumer.”

ITAT has the largest network of multi-brand clothing retail chains in China, operating more than 700 stores across 275 cities.