No charges for sportswear firms after 'cartel' probe

Sportswear firms Sports Direct International and JJB Sports will not face charges following an investigation by the UK's Serious Fraud Office into allegations of cartel activity, it was disclosed today.

However, the SFO is still investigating individuals in relation to the alleged case of anti-competitive practices in the sports retail market.

The inquiry first came to light in September last year after JJB Sports approached the Office of Fair Trading (OFT) over a “suspected agreement or concerted practice to dampen competition in the sports retail market”.

Sports Direct is controlled by billionaire founder Mike Ashley, who is also the owner of Premier League football club Newcastle United.

Between them Sports Direct and JJB have leading positions in the market for replica football shirts and sportswear.

The case centres on alleged anti-competitive conduct between June 8, 2007 and March 25 last year.

Both companies released statements repeating the SFO’s decision not to bring charges against either firm. JJB said it would continue to co-operate fully with the SFO’s investigation.

Shares in JJB Sports were up 5% after the announcement, but shares in Sports Direct were down 2%.