Elverys management likely to win race to save sports chain

The management of sports shop chain

Elverys

looks most likely to win

a battle to buy it out of examinership, according to weekend reports.

Accountant Simon Coyle of Mazars was appointed examiner to the Mayo-headquartered chain in February after being granted High Court protection from its creditors, including Nama which is owed €23 million.

A number of competing bids emerged for the business, including its own management headed by managing director Peter Rowland; British retailer Sports Direct, controlled by Mike Ashley, who owns English premiership football club Newcastle United; and Irish chain Heatons in which he also has a stake .

While it has yet to be finalised it was suggested that the management bid is likely to win the day, and that Mr Coyle will shortly seek High Court approval for a rescue plan that will see Mr Rowland and his colleagues take control of the business.

Elverys management would not comment on the process yesterday.

A source close to Heatons said the company had bid full price for Elverys and was disappointed with the outcome.

The source added that Heatons would now spend the money earmarked for the Elverys purchase on improving its offering and taking on its rivals on price.

Examinership is a corporate rescue mechanism that allows insolvent companies that have a reasonable prospect of survival to seek court protection from creditors.