Allsports founder may take control

David Hughes, the founder of Charlton kit sponsors Allsports, is negotiating to buy the group's debt from Barclays to take control of the company's future. He is also said to be considering paying Allsports' imminent rent bill to give the company more time to consider its future.

Barclays holds about £10m of Allsports' debt. The bank is considering calling in administrators (thought to be PricewaterhouseCoopers) ahead of the quarterly rent day.

A number of restructuring firms are also though to be interested, including Hilco, the company that bought the debt of retail chain Allders. Mike Ashley, the owner of the Sports World chain, might also revive his interest.

If Mr Hughes gains control of Barclays' debt he is understood to be considering bringing in his own administrators. Whoever the administrators are they are likely to close half of the group's 270 stores. Allsports has been hit by a price war among retailers and the decline in non-food retail sales as the economy softens.

Any administrator or purchaser will be looking to cut costs, including the Addicks sponsorship. The details of the contract are commercially confidential. Unconfirmed speculative rumours have suggested that relatively little was to be paid this year relative to previous years.