The Serious Fraud Office (SFO) will confirm imminently that its investigation into Sports Direct and JJB Sports is over and no charges will be brought against the companies, the retailers revealed in regulatory announcements this morning.
However the SFO’s investigation into individuals is continuing.
The Office of Fair Trading (OFT) launched an investigation into an alleged cartel in sports retail after Sport Direct’s arch-rival JJB Sports blew the whistle on a series of concerns. The controversy followed a bitter feud between the pair and their leaders, Sports Direct founder Mike Ashley and JJB’s then chairman Sir David Jones.
Analyst Matthew McEachran of Sports Direct’s house broker Investec said: “The announcement giving Sports Direct a clean bill of health regarding the SFO investigation is what investors were hoping for.
“The shares have run up in anticipation of this result, though. Furthermore, with the investigation into individuals still continuing there remains some risk and uncertainty to the investment case.”