Sports Direct Surrenders to Pressure and Closes Stores

Sports Direct, the UK's largest sporting goods retailer owned by Frasers Group (LON:FRAS), has finally decided to close all of its stores, despite yesterday's claims that stores will stay open as sports and fitness equipment makes the company an essential asset in times like this.

Half an hour minutes after the UK Prime Minister Boris Johnson’s ordered the closure of non-essential shops, Frasers Group, owner of Sports Direct and Evan Cycles, contacted all of its staff claiming the company provides essential services and that it should remain open.

The company leaders said the equipment it sells could be used at home as gyms are close because of a national shutdown.

Still, the retailer decided to close its branches suggesting it may reopen if the government allows it. The company’s initial decision to keep its stores open has drawn criticism over the wellbeing of its staff.

The UK’s Minister for the Cabinet Office, Michael Gove, appeared on ITV’s Good Morning Britain on Tuesday where he said that Sports Direct’s branches were not vital and should close.

Gove said Sports Direct’s CEO Mike Ashley should revoke what he said.

Trade union leader Paddy Lillis had a similar opinion on the matter.