End of an era: Well-known sports chain Hervis pulls out of Hungary and Romania
A major shake-up is underway in Central and Eastern Europe’s sports retail market, as Austrian-owned Hervis announced it will sell its Hungarian and Romanian subsidiaries to the UK’s Frasers Group.
The move marks the chain’s full withdrawal from two key markets where, according to the company, consumer preferences have shifted towards fashion rather than sport.
Hervis Sport- und Modegesellschaft confirmed on Tuesday that all 29 Hungarian stores and 49 Romanian outlets – along with their employees – will be transferred to Frasers Group once competition authorities in both countries approve the deal. The purchase price has not been disclosed.
According to Forbes.hu, Frasers Group, best known for its Sports Direct stores and for owning brands such as Everlast and Lonsdale, is significantly strengthening its presence in the region with the acquisition. The company has been steadily expanding in Hungary, where its local operation recently posted rising revenues and a healthy profit.
“Fashion-oriented markets” behind exit decision
Ulrich Hanfeld, CEO of Hervis, said the strategic goal is to turn the chain into a “modern, sports-focused specialist retailer” with a clear product strategy. By contrast, he argued, the “fashion-oriented markets in Hungary and Romania have drifted away from our core business”.
The sale will allow Hervis to concentrate on its remaining Austrian, Slovenian and Croatian markets, which are not affected by the transaction.
Industry observers note that the withdrawal does not come as a surprise. Hervis has struggled for years in Hungary, facing declining turnover, mounting losses and store closures. The chain’s group-level financial results underline those difficulties: in 2024, Hervis recorded a EUR 43 million loss.
Hungary’s local subsidiary, Hervis Kft., has been in particularly poor shape. After peaking in 2022, revenue dropped from HUF 18.4 billion to 15.3 billion within two years. The company has not posted a positive operating result since 2015, and by 2024 its equity had fallen into the negative range.
High debt levels (nearly HUF 10 billion in liabilities) further heightened the financial pressure. These challenges led to store closures: by the end of 2024, just 30 shops remained open in Hungary, and the number appears to have fallen to 29 by early 2025.
Frasers expands as competitors dominate
The acquisition offers Frasers Group a stronger foothold in a market where it has been performing increasingly well. Sportsdirect.com Hungary Kft. reported a 17% revenue increase in its latest financial year, reaching HUF 8.5 billion and maintaining profitability.
However, the sector remains dominated by the French giant Decathlon, which has outpaced competitors for years. Although Decathlon has not opened new stores in Hungary since 2018, its revenues continued to grow in 2024, climbing to HUF 86.2 billion with a record HUF 4.1 billion profit. It is also one of the country’s strongest online retailers.
Other players have also been struggling. DRK’s operator, Szinga-Sport Kft., posted losses for the second consecutive year, while revenue dropped by 11% in 2024. The company recently phased out its long-standing Playersroom brand to shift focus towards Dorko.
Uncertain future for the Hervis brand
Due to confidentiality agreements and pending regulatory approvals, many details remain unclear, including whether the Hervis brand will disappear from Hungary or simply re-emerge under a new strategic direction.
For now, the only certainty is that Frasers Group will be taking over all Hungarian and Romanian stores and employees, marking the end of Hervis’s decades-long attempt to remain competitive on a market increasingly shaped by price sensitivity, strong multinational rivals and changing consumer tastes.