UK's JD Sports to sell loss-making division

JD Sports ©

Bank, the loss-making fashion division of retailer JD Sports, is set to be sold to restructuring specialists Hilco Capital, Reuters reports.

The division reported an £8.2m loss in the six-months to August 2014, and JD Sports had lent funds from its more profitable operations to keep Bank afloat. Although no announcement has been made regarding the price the business is being sold for, it is thought that these loans will be recouped, and further details are expected in the trading update scheduled for January.

According to City A.M., JD Sports have said that the overall write down from the sale will "not be material to the group net assets position", and share prices in JD Sports rose by 4.3% on Tuesday.
Hilco have said that targets for Bank will be “identifiable problems which can be resolved through the application of our financial and/or operational restructuring expertise.”

Source insol-europe.org