Dick's Sporting Goods, Ch. 13: Strategic Alliances

Dick's Sporting Goods use a strategic alliance to its advantage back in 2012. It invested in JJB Sports of the UK. This was the first investment and expansion overseas for DSG, based out of Pittsburgh. This alliance was created for the benefit of both companies. DSG would end up holding a 61% share of company, allowing it to reap the rewards of the 2012 Summer Olympic Games held in England. JBB had been fighting bankruptcy over the last few years. With DSG's support they would be able to provide confidence to their investors and potentially turn around the company's direction.

The ultimate hope for DSG was that JJB showed enough potential to be a multi-line sporting goods company in the UK and throughout Europe.

This alliance ended up crashing and burning as DSG quickly removed its obligation from JJB after the conclusion of the Olympics.

"Chairman and CEO Edward Stack said that the JJB Sports investment was high risk from the outset, and that Dick's has no further funding obligations to JJB and will continue to monitor the situation."

http://www.thedeal.com/content/restructuring/dicks-sporting-goods-to-invest-in-jjb.php

http://www.businessweek.com/ap/2012-08-14/dicks-sporting-goods-sinks-in-uk-investment