What: Frasers Group has decided to back out of its planned acquisition of SportScheck after the retailer filed for administration.

Why it is important: The decision by Frasers Group to back out of the acquisition of SportScheck highlights the ongoing financial crisis surrounding Signa and the challenges faced in the European sports market.

Frasers cited the ongoing financial crisis surrounding SportScheck's owner, Signa Holdings, as the reason for its withdrawal. However, Frasers still believes that SportScheck is an attractive asset in one of Europe's key sports markets and intends to work with the appointed insolvency administrator to potentially acquire the retailer's business/assets. This comes as Signa Holdings itself filed for insolvency due to a lack of necessary liquidity and severe economic pressure.

Frasers pulls out of SportScheck acquisition as it seeks pre-pack deal instead