GO Outdoors’ £20.4m restructuring will pay off says owner
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Restructuring of GO Outdoors – one of the UK’s top suppliers of fishing tackle – cost more than £20m during the first half of this year, its owner, JD Sports, has revealed.
The cost was a significant factor in a £37.2m loss for the group’s outdoor division in the 26 weeks to August 1st, compared to a loss of £45.2m in the same period last year.
In its report to investors, the group said: “We acknowledge that the restructuring of our Outdoor business in the last two years has been a difficult process. However, coming out of this process, we are increasingly confident that we are developing a proposition which helps customers get the most out of their time outdoors and that we are well placed to take advantage of the opportunities in general fitness and local holidaying which will likely prevail in the future in a world changed by COVID-19.”
As previously reported, GO Outdoors entered administration in June this year before JD Sports reacquired the trade and assets for £56.5m, of which £55.2m returned to the group as partial repayment against its historic indebtedness.
Despite the closure of its stores for a number of weeks at the height of the Coronavirus and a relatively weak transfer of sales to online compared to the Sports Fashion brand, Outdoor reduced its loss before exceptional items in the period to £16.8m (2019: -£20.1m).