Briscoe targets the 32 Stirling Sports stores

Briscoe, which runs Rebel Sports, has agreed to buy the 32-store Stirling Sports franchise and Franchise Investments.

It plans to maintain the Stirling Sports brand alongside its 20-store Rebel brand. Franchise Investments is in receivership.

The agreement is conditional on vendor shareholder approvals and on obtaining commitments from a significant number of the existing Stirling franchisees to enter into a new franchise agreement.

The satisfaction (or otherwise) of these conditions was expected to be determined within two months, Briscoe said.

The purchase price will not be disclosed until the sale and purchase agreement becomes unconditional. Briscoe said it would pay cash for the business.

Stirling was caught up late last year in the collapse of The Building Depot which was owned by listed company RetailX, which also had a management contract for Stirling Sports. That contract was terminated in October.

The Stirling Sports chain generated about $40 million in sales from 38 stores last year. At its peak, the chain had more than 50 stores and sales of more than $50 million.

Briscoe managing director Rod Duke said initial feedback from Stirling franchisees had been constructive and the deal would allow his company to implement its plan to expand outside main cities using the smaller format Stirling stores.

Briscoe shares last traded at $1.18, having traded between $1.05 and $1.58 in the last year.

- NZPA