High street retailer Evans Cycles has been bought by Mike Ashley's Sports Direct group for £8 million.
This latest rescue deal for a troubled retailer comes just months after it acquired high end department store chain House of Fraser.
But in an update to the stock exchange this afternoon, Mr Ashley warned that around half of Evans Cycles' 62 stores would not be able to stay open although it is not known at this stage which ones will survive.
Evans Cycles was founded in 1921 and sells a broad range budget and high end bikes, clothes, accessories and sports nutrition, employing around 1,300 staff.
It runs shops in Temple Street, in Birmingham city centre, Sutton Coldfield and Leamington Spa and its head office, warehousing and distribution functions are all based in Gatwick.
Reports in September suggested the retailer was in trouble and it was urgently seeking new ownership.
Mr Ashley said: "We are pleased to have rescued the Evans Cycles brand.
"However, in order to save the business, we only believe we will be able to keep 50 per cent of stores open in the future.
"Unfortunately, some stores will have to close."
Around £2 million of the purchase price was paid to fund Evans Cycles' October payroll.
James Keany at property consultancy CBRE has been retained on all property-related aspects of the deal.
Mr Keany 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."
Financial services firm PwC was appointed administrator of FW Evans Cycles (UK) Ltd and immediately sold the business and its assets to three companies, all of which are ultimately owned by Sports Direct International, in what is known as a pre-pack deal.
Matt Callaghan, joint administrator and partner at PwC, said: "We are delighted to have secured a future for the business and employees of Evans.
"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.
"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."