Huddersfield-based Direct Golf UK has been taken over by Sports Direct after a battle for control.
But the move should safeguard all 162 jobs.
Mike Ashley’s Sports Direct has bought the second biggest golf retailer in the UK , following a boardroom tug-of-war with its founder, former Huddersfield golf professional John Andrew.
Ashley is the colourful and controversial owner of Premier League soccer club Newcastle United.
Direct Golf UK and its parent company, Powerhouse Golf, were put into administration on October 16 after the discovery of alleged accounting irregularities which effectively rendered the business insolvent.
Problems came to light after Powerhouse Golf reported a 76% dive in profits and sales slid 13% to £21.4m in the year to the end of September 2014.
Administrator Philip Duffy said the group had come under “serious cash flow pressure as a result of significant accounting issues that will require further detailed investigations by the administrators”.
It is understood to owe large amounts to HM Revenue & Customs, landlords and suppliers.
Sports Direct took a 25% stake in Powerhouse Golf last year and reputedly invested £2.25 million in the company.
Three weeks ago the Examiner reported that Sports Direct had changed the locks on the headquarters at Bankwell Road, Milnsbridge.
Mr Andrew, who set up the company in 1999, changed them back again and employed a security guard.
He told the Examiner: “We are trying to save the company with investment. We need a cash investment to keep it going.”
The takeover is good news for Direct Golf’s 162 staff, who are based at the headquarters and 20 stores, as it safeguards the jobs of the entire workforce.
