Billionaire Mike Ashley has stepped in to buy struggling bike retailer Evans Cycles but it will result in half of the bike chain's shops closing and hundreds of job losses.
The firm was placed into administration before being sold to Sports Direct International.
Mr Ashley, who founded Sports Direct, said: "In order to save the business, we only believe we will be able to keep 50% of stores open in the future.
"Unfortunately some stores will have to close."
Established in 1921, Evans Cycles has 62 stores, employing around 1,300 staff. It is understood the firm has four stores in Scotland, two in Glasgow, one in Edinburgh and one in Aberdeen.
It emerged last month that the retailer was seeking a rescue deal, with accountancy firm PwC brought in as advisers.
Matt Callaghan, joint administrator and a partner at PwC, said it had been a very difficult year for Evans following the cold start to 2018 and a lack of finance for investment.
“We are delighted to have secured a future for the business and employees of Evans," he said.
“Evans is a long-standing, well known and trusted brand with nearly 100 years of heritage in the cycling market. To have managed to preserve the business and transfer all staff to the purchaser is particularly pleasing.
"2018 has been a very difficult trading year for the business, in part due to the impact of the extended winter weather in the early part of the year and a lack of cash to invest in stores and develop the online platform.
"A combination of losses, the capital expenditure requirements and tightening credit has led to a liquidity crunch."
The sale is part of a pre-pack administration process which allows the sale of an insolvent business before insolvency experts are appointed.
James Keany of commercial property firm CBRE, which is advising Sports Direct said: "We are looking forward to working with landlords in order to help create a sustainable business. We will make contact with landlords over the next few days and discuss the future of individual stores."
Evans is the second retailer Mr Ashley has rescued and added to his retail empire recently, buying House of Fraser in a similar prepack deal for £90m in August.
He is also thought to be interested in buying Debenhams, the department store group in which he owns a large stake.
He has managed to save a number of House of Fraser stores previously earmarked for closure, but has apparently clashed with landlords at other locations.
In 2015, Evans was sold to private equity firm ECI Partners for £75m, however in recent months it has been scrambling to find new ownership and a £10m cash injection.
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