What: The acquisition of SportScheck by Frasers Group is in jeopardy as the German sporting chain faces collapse.

Why it is important: The potential collapse of SportScheck and Frasers Group's acquisition deal exposes the significant impact of funding crises and insolvency on retail chains and their expansions.

Frasers Group, led by Mike Ashley, intended to fuel its European growth with the acquisition of SportScheck's 34-store chain. However, SportScheck's owner, Signa Holding, is experiencing a funding crisis and has filed for insolvency for its Signa Sports division. Suppliers are hesitant to do business with SportScheck, and administrators may be called in as early as Monday.

Frasers Group is exploring the possibility of rescuing the deal. Under Germany's bankruptcy laws, Frasers Group could potentially fund the collapse and acquire SportScheck through an insolvent sale. Frasers Group was also among the interested parties in the administration of Wiggle, an online bike retailer owned by Signa Sports.

Frasers’ SportScheck acquisition at risk as retailer borders on collapse