Could Whelan's old nemesis rescue Wigan's DW Sports business?

Dave Whelan in 2009 when his DW Sports business began its sponsorship of Wigan's football and rugby stadium

That was the talk of the business world today as reports circulated that the boss of Frasers - formerly Sports Direct - had offered more than £30m to administrators for the Pemberton-based chain.

DW Sports, set up by the former Latics chairman in 2009 partly to rescue stores in the JJB Sports empire he had founded but then seen collapsing after he sold it, went into administration at the beginning of the month.

Its administrators, BDO, have been said to be asking for around £20m for the ailing company, according to the Sunday Times.

DW Sports operates 73 gyms and 75 retail sites across the UK, 25 of which closed with immediate effect and the remaining 50 - including Wigan town centre’s - are currently holding closing down sales. Some 1,700 employees have been at risk of redundancy.

Bosses blamed a “challenging” quarter as they called in BDO.

But Fitness First, which is a sister company of DW, will continue to operate as a separate company and its 43 clubs will be unaffected by the administration.

Chief executive Martin Long said: “As a consequence of Covid-19, we found ourselves in a position where we were mandated by Government to close down both our retail store portfolio and our gym chain in its entirety for a protracted period, leaving us with a high fixed-cost base and zero income.

“Like many other retail businesses, the consequences of this extremely challenging operating market have created inevitable profitability issues for DW Sports.

“The decision to appoint administrators has not been taken lightly but will give us the best chance to protect viable parts of the business, return them to profitability, and secure as many jobs as possible.

“It is a difficult model for any business to manage through without long-term damage, and with the limited support which we have been able to gain.

“Having exhausted all other available options for the business, we firmly believe that this process can be a platform to restructure the business and preserve many of our gyms for our members, and also protect the maximum number of jobs possible for our team members.”

The move by Mr Ashley follows a series of deals Ashley has made for the high street, including Jack Wills and House of Fraser in recent years.

For years Sports Direct and JJB Sports battled for supremacy on the high street.

There have been unconfirmed reports that the Whelan family might be trying to buy back the DW Sports business though.