CMA fines Pentland and JD Sports for breach of Initial Enforcement Order
The Competition and Markets Authority has fined Pentland Group Limited (Pentland) and JD Sports Fashion plc (JD Sports) for their failure to comply with an initial enforcement order (IEO) in the context of the completed acquisition by JD Sports of Footasylum plc.
The breaches arose from the service of a break notice by Footasylum to close its Wolverhampton store. Specifically, the parties failed to comply with the IEO by not procuring that, except with the CMA's prior written consent or in the ordinary course of business for the separate operation of the Pentland business and the Footasylum business.
The CMA did not consider that the impact of COVID-19 on the parties’ financial resources was sufficiently material to impact the level of the penalty. However, given the significant short-term impact of COVID-19, the CMA has deferred the deadline for the payment of the penalty for nine months.
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