Sports Direct is reportedly preparing to close a third of USC stores, putting hundreds of jobs at risk.
The retailer’s directors filed a notice of intention to appoint receivers to USC at the High Court on Tuesday (January 6) meaning stores could close as early as next week.
A formal notice of intention usually gives a company 10 days before it has to declare insolvency. Duff and Phelps, an insolvency specialist, and Gallaghers, a law firm, have been lined up to jointly handle any wind down.
Sports Direct is believed to have 90 USC stores, with over 1,000 employees.
Staff at USC’s warehouse in Dundonald, Ayrshire, were made redundant yesterday (January 7). It employs about 100 workers.
According to The Telegraph the decision to file with the High Court’s Chancery Division was prompted by a demand from Diesel for unpaid debts.
The claim was made on December 15th and on the 23rd December at a meeting of USC’s directors chaired by Forsey, it was agreed that the company would be unable to repay the debts.
Sports Direct declined to comment.