SPORTS DIRECT, founded by Newcastle United owner Mike Ashley, has bought an 80 per cent stake in designer fashion chains USC and Cruise, for £7m.
USC has 38 stores in the UK and had sales of £70m in the year to January. Cruise has 10 UK stores and an annual turnover of about £20m.
Sports Direct is reported to have beaten rivals JD Sports to the deal.
Mr Ashley's business will also provide a facility of up to £20m to develop the two brands.
Sir Tom Hunter, a Scottish millionaire and philanthropist, will retain a 20 percent stake in both businesses. "This deal will transform the prospects for both USC and Cruise and our employees at a time of extraordinary turbulence in the High Street," said Sir Tom.
"I've known the Sports Direct team for many years and have huge respect for their talent and look forward to co-investing with them."
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here