Frasers nears control of distressed Norwegian sports giant

Frasers Group is closing in on a takeover of distressed Norwegian sportswear retailer XXL ASA, but warned that it was unsure whether the brand could be rescued.

The Sports Direct owner said in March that it would make a mandatory offer for the remaining shares of the retail company after its stake surpassed 30%.

In an update on Wednesday (29 May), Frasers reported that acceptances of its offer would result in it controlling more than 92% of the retailer’s share capital and 90% of voting shares.

However, the statement carried multiple warnings that XXL is in “significant distress” and that it was unsure on the whether it could be rescued.

The retailer operates 85 stores across Norway, Sweden, and Finland, alongside an online platform, employing over 4,000 people. It specialises in products for sports and outdoor activities such as cycling, hunting, and skiing.

The Sports Direct owner said in a statement: “Frasers is acquiring a business which is in significant distress. As such, all stakeholders, including but not limited to, brand partners, landlords, suppliers and partners, will need to work collaboratively with Frasers in its efforts to save the XXL business in its current form.

“Frasers does not currently have sufficient information to be able to determine how much of a viable proposition XXL in its current form is, and whilst its current intention is to work on stabilising the XXL business, this will be more difficult given the passage of time, and there is no guarantee that XXL can be saved in its current form or at all.”

The retail giant had launched a bid back in December 2024 to acquire more than 50% of XXL at NOK 10 per share, valuing the company at NOK 246.35m (£17m). However, it abandoned the offer in February 2025, citing a lack of support from other major shareholders.

Frasers continued: “Having offered to provide support to help XXL navigate its challenges over the past 18 months, and been rebuffed, this is a situation which Frasers believes could have been avoided.

“In the meantime, XXL has not been able to execute on its proposed turnaround plan and XXL’s financial and trading position has continued to deteriorate.”

Click here to sign up to Retail Gazette‘s free daily email newsletter