Sports Direct has written to Golddigga stockists to reassure them it is “business as usual” after it rescued the young fashion brand from administration last week.
Golddigga stockists said the discount sportswear chain had sent out a letter confirming that autumn 08 deliveries would be honoured and that the company would continue to sell Golddigga on a wholesale basis.
The spring 09 range, which was due to be showcased at Bread & Butter Barcelona prior to the administration, will launch to the trade in August.
Stockists told Drapers they were relieved, as they had expected Sports Direct to shrink back distribution and use Golddigga as a value own brand at Sports Direct shops. However, there was caution about the brand’s long-term prospects.
One stockist said: “I thought it would be immersed in the Sports Direct operation, but the word at the moment is that is not the case. Who knows what will happen in six months though?”
olddigga will remain at its original head office in Derby for the foreseeable future.
Meanwhile, profits at Sports Direct dropped by more than half to £85 million for the year to April 28. Sales fell 6.5% to £1.26 billion over the period, driven by a dip in UK sales, down 10.5% to £957.7m.