The battle for control of Huddersfield-based retailer Direct Golf was continuing today – with employees and customers still no wiser about the outcome.
Minority shareholder and billionaire retail boss Mike Ashley is allegedly trying to oust Direct Golf founder John Andrew and his co-directors – while Mr Andrew is seeking an urgent cash injection to keep the Milnsbridge-based business going.
Mr Andrew is working with advisors from accountancy firm Begbies Traynor in Leeds in an effort to salvage the firm – having filed a notice of intention to appoint administrators. Such a move provides protection from creditors while the company seeks a way forward.
Mr Andrew says he is prepared to provide a personal security of £1.8m and had a letter of support from Mr Ashley’s Sports Direct – which has a 25% stake in Direct Golf – and appealed for the firm to help save the business.
The extraordinary battle took another twist yesterday when it was claimed that employees of Direct Golf had been sent letters telling them were now employees of Mr Ashley’s Sports Direct.
Mr Andrew claims Sports Direct sent in officials to change the locks on the company’s headquarters in Bankwell Road on Friday.
He had them changed back and put in his own security guard.
The Examiner has put Mr Andrew’s allegations to Sports Direct, but a spokesman said: “There is no comment from the company on this.”
While Direct Golf’s 20 stores across the UK are trading as normal – including the store at Leeds Road in Huddersfield – it is understood that online sales have been put on hold.
Battle for Direct Golf UK
Callers phoning the head office of Direct Golf UK get a recorded message saying the phone system is down and someone would call back “as soon as these issues are rectified.”
The position for customers who have ordered and paid for goods online remains unclear. One customer in Scotland contacted the Examiner concerned that golf gear worth £2,500 which he ordered from the company had not been delivered as promised.
Direct Golf, which was founded by PGA Fellow professional Mr Andrew in 1991, announced in July last year that Sports Direct, formed by Newcastle United owner Mr Ashley, had taken an equity stake in the business and provided funding to help it pitch into the European market.
At the time, Mr Andrew, who retained majority ownership and day-to-day control, said: “Teaming up with Sports Direct is a fantastic opportunity for us and will give Direct Golf access to many new and attractive market opportunities.”
The deal with Sports Direct came two years after Direct Golf secured a £3.5m funding deal from Royal Bank of Scotland.
Over a 25-year period, the company posted year-on-year growth – building from a single store in Huddersfield to 20 outlets across the UK. The company employs 180 staff and is the UK’s second largest golf retailer.
