JD Sports has sold its young fashion business Bank to a subsidiary of Hilco Capital and will focus instead on its sports fascias.
The retailer said the deal would recover a “substantial” amount of its inter-company loan. The amount will be confirmed in due course.
Bank recorded a pre-tax loss of £8.1m in the year to February 1 and had gross assets of £51.7 million at that date.
Peter Cowgill, JD Sports executive chairman, said: “We have decided that we must prioritise future investment in the sports fascias and consequently we believe that the sale of Bank is in the best interests of the group.
“We shall continue to support the broadest possible range of fashion brands within the group.”