Ashley's Sports Direct Takes 19% Stake In Kitbag Owner Findel

Shares in Findel have "rocketed after it emerged that Sports Direct has snapped up a 19 percent stake in the football shirt retailer," according to Ashley Armstrong of the London TELEGRAPH. The stake emerged as Findel disclosed that it had "agreed terms to sell its football strip replica business Kitbag to another third party." Analysts speculated that Sports Direct, controlled by Newcastle United Owner Mike Ashley, "was buying the stake to disrupt the sale of Kitbag," which is expected to fetch around £3M ($4.55M). Kitbag also sells Newcastle United replica football shirts. The "unusual course of events" comes after Sports Direct "walked away from buying the Kitbag business" in a £20M ($30.3M) sale process earlier this year. A person close to Sports Direct said that the stake had been "bought for strategic reasons" and the company "looked forward to working with Findel's management as a supportive shareholder" (TELEGRAPH, 9/29).