Cash-rich retail giant JD Sports is said to be leading the charge in purchasing Arcadia Group’s crucial logistics center in Daventry. The warehouse complex has attracted multiple offers, with JD Sports now entering into exclusive talks to acquire it. In a surprising turn of events, heavyweight contenders including Boohoo, Amazon, and eBay have been left trailing behind in the bidding race.

JD Sports, known for its strong financial position, recently announced that it had amassed an impressive £464.2 million from the sale of 6% of its shares. This substantial amount is earmarked for future strategic investments. Although no final deal has been reached, the acquisition by JD Sports would prompt the repayment of a £50 million loan that Arcadia had secured against the Daventry site from its former owner, Sir Philip Green’s family.

The surge in demand for e-commerce during the COVID-19 pandemic has led to an increase in the need for expanded supply chain capabilities to meet fulfillment requirements. As a result, fully operational centers like Arcadia’s Daventry warehouse have garnered significant interest. It is worth mentioning that JD Sports had previously been unsuccessful in its attempts to acquire TopShop and TopMan, which were ultimately sold by Arcadia’s administrator, Deloitte, to ASOS. Besides the logistics hub, Arcadia’s only remaining asset is the lease on the flagship Topshop Oxford Circus store, which is currently in the midst of a sale process overseen by KPMG.

Useful links:
1. JD Sports Investor Relations
2. BBC Business: Companies