Mike Ashley’s Frasers Group has pulled out of the deal to take over Germany’s SportScheck, which it had initially agreed to buy in October.

The retailer said that it was “disappointed” by the company’s insolvency, but that it hoped to still buy the sports retailer’s business or assets out of administration.

Frasers agreed a takeover of SportScheck with parent company Signa Retail Department Store Holding in October. It did not reveal how much it planned to pay for the business.

SportScheck has 34 shops in Germany and brings in revenues of around 350 million euro (£303 million).

“SportScheck GmbH has today filed for insolvency. Frasers has exercised its rights under the agreement to withdraw from the transaction,” Frasers told shareholders on Thursday.

“While Frasers is disappointed by the insolvency of SportScheck, it continues to believe that SportScheck is an attractive asset in one of Europe’s most important markets for sports and it intends to work with the appointed preliminary insolvency administrator of SportScheck with a view to acquiring the SportScheck business/assets out of administration.”

On Wednesday, Austria’s Signa Holding, which owns part of London’s Selfridges and properties around the world, filed for administration.

Two weeks ago the company sold part of its share in Selfridges to Thailand’s Central Group. It happened after Signa, which was built by Rene Benko, called in restructuring experts.

Mr Benko was ousted earlier in November as the company tried to secure its future. Signa also owns part of New York’s Chrysler Building.