Frasers Group buys Coventry Arena for a reported £17m

Coventry Arena, the former 32,600-seat home of Wasps Rugby Club, which has itself gone into administration, has been sold to Frasers Group, the company belonging to retailer Mike Ashley.

It will now become a permanent home to Coventry City Football Club  and has secured the future of 1,000 jobs in the stadium, which includes a hotel and  casino. The ground was also the home of Wasps rugby club before it went into administration last month.

A court hearing placing the Arena companies – Arena Coventry Limited (ACL), Arena Coventry (2006) Limited and IEC Experience Limited – into administration, with Andrew Sheridan and Raj Mittal, partners of specialist business advisory firm FRP appointed as joint administrators.

Upon appointment the joint administrators immediately completed the sale of the businesses, including ownership of the Coventry Building Society Arena, to Frasers Group.

Andrew Sheridan said: “This is a pleasing outcome, which helps secure up to 1,000 jobs in Coventry and ensures that the venue will continue to play a major role in the city’s economy as a world-class entertainment and hospitality venue and home for Coventry City Football Club.

“By agreeing to sign an exclusivity agreement before the 1st November, Frasers Group was the only interested party that was able to meet the terms of the sale process. This was essential in providing the necessary funding that enabled the Arena to continue trading beyond that date.

"Without this, and the collaborative and supportive approach taken by all key stakeholders throughout the process as well as the tireless efforts of the core management team, the Arena would have been forced to close on 2nd November resulting in hundreds of job losses and a materially worse outcome for creditors. We wish Frasers Group and all involved in the Arena every success for the future.”

A spokesperson for Frasers Group said: "We are delighted with the acquisition of the CBS Arena which will complement the Group’s existing portfolio of brands and investments. Through the acquisition, we are pleased to have been able to secure a long term future for the Arena, protecting jobs and supporting the local community. In particular, we are looking forward to working with Coventry City Football Club."

This investment demonstrates Frasers Group’s belief in the West Midlands as a key economic region and will create many mutual synergies that are aligned with the business’ elevation strategy and the Group’s potential development plans in the wider area. Frasers Group will continue to engage with local stakeholders at the site to ensure stability and continuity.

A spokesperson for the Coventry Building Society Arena said “We are delighted that Frasers Group have acquired the arena. This will see the doors of this flagship venue remain open and continue to play a strategic part in the City of Coventry’s economic tourism plan. It is a great result for everyone who uses the venue for business, sport, and music as we now can continue with what we do best and that’s providing hospitality at is best.

“We would like to thank all of our staff, suppliers and tenants who have worked so hard to ensure that it has been ‘business as normal’ during the past weeks. Our thanks also go to our key stakeholders, Coventry City Football Club, Delaware North UK, Coventry City Council and Coventry Building Society, for their ongoing support and collaboration.”

The announcement on Thursday afternoon followed earlier news that day of the Sky Blues' intention to purchase the Arena, after Doug King was announced as new majority owner of the Club (subject to EFL approval) on Wednesday evening.

In an interview with BBC CWR, he said:: "We came in very late, we only got the deal done last night (Wednesday) and obviously the judge made the call that there was too much uncertainty at this point for him to entertain we were serious.

"We were deadly serious, we had the interim funding, we would have certainly paid more than was on the table.

“So, all in all, it's a tough result, but it is what it is. I want to support the club and get it where it deserves to be.

"What I would obviously welcome is a discussion with the new owner (of the Arena), to get together and maybe get involved that way and obviously for him to honour our ability to play there through the length of lease we signed a couple of years ago. They're the critical things."