Direct Golf clashes with Sports Direct over control as administrators are called in

Direct Golf UK, the Huddersfield-based golf retailer, has reportedly filed for administration while in the midst of a dispute over control of the company.

According to The Telegraph, Direct Golf’s founder, John Andrew, filed a notice of administration in a court in Leeds on Thursday afternoon after meeting with advisers at insolvency firm Begbies Traynor.

However, allegations have now been made that Mike Ashley’s Sports Direct is battling to take control over the administration process by filing wind-up proceedings, with hopes of doing a pre-pack deal with its own firm of administrators.

Last year Sports Direct struck a deal to take a 25% stake in the 20-store golf retailer, and also provided a significant investment for its expansion plans.

But this business relationship now seems to be at breaking point as Mr Andrews has accused Sports Direct of removing him as a director, and claimed Ashley’s firm changed the locks on Direct Golf’s head offices in Milnsbridge, forcing 180 staff to leave the premises.

Mr Andrews told The telegraph: “We thought that Sports Direct had sent us letters of support but they have done the opposite. The only thing I knew was when I got a phonecall saying there were four burly men at my offices changing our locks. Our staff are so upset and ashen-faced.

“The police have been called. Personally I feel a bit scared. We are being intimidated as Sports Direct is trying to take control of the company from under our feet.”

As for its most recent set of financial results, ending on 31 September 2014, Direct Golf reported a dip in sales from £23.8m to £20.8m, while pre-tax profit also decreased from £639,091 to £329,003.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →