USG

Background

Unlimited Sports Group (‘USG’) was a Dutch sports, outdoor and lifestyle group, comprising 187 stores which trade under the Perry and Aktiesport fascias, together with brand and wholesale businesses. USG became financially distressed following the collapse of retailers Scapino and V&D, in which it had substantial concession businesses. USG was declared bankrupt by the Amsterdam court in February 2016.

In March 2016, Hilco Capital was engaged by JD Sports to provide a suite of advisory services to support JD’s acquisition of USG out of bankruptcy.

Hilco Capital’s role

• Worked with the UK’s JD Sports Fashion plc to structure its purchase of USG
• Conducted stock valuations
• Provided extensive financial modelling support to inform the client’s decision making
• Deployed head office support along with a team of 25 retail field consultants over an extended period
• Managed all aspects of the non-core store estate to provide continuity and optimise sales and margins
• Created bespoke Dutch language POS schemes to facilitate multiple concurrent trading strategies across the estate, including outlet promotions, brand events and store closures

Results

• 107 non-core stores operated and closed in phases over a 15 month period
• Realised excess inventory within the retail group through the non-core stores
• Converted additional surplus stock in the wholesale group into cash through the store closure process
• Removed the distraction of operating the non-core stores from JD Sports, enabling its management team to focus on integrating the core stores
• Supported the international expansion one of the UK’s most successful specialist retailers