JD Sports Fashion has given up on loss-making fashion chain Bank after it agreed a deal to offload the business to a retail turnaround firm.

Bury-based JD, which has owned the 88-strong retail chain since 2007, wants to prioritise investment in its sports retail operation.

The company, which also owns a majority stake in the Tiso outdoor equipment and clothing chain, has not disclosed the terms of the transaction with HMV owner Hilco, although it expects the substantial recovery of an intercompany loan.

JD's fashion division, which includes the more successful Scotts brand, recently slumped to a half-year loss of £8.2 million despite continued efforts to revive Bank, including appointing a new management team.

Bank was founded by Andy Scott - a former Macclesfield Town footballer - in 1994 and largely sells branded fashion items aimed at the youth market.

JD bought the chain from Phoenix Equity Partners and management for £18.5m.

The company has 580 sports outlets in Europe and recently doubled profits for the six months to August 3 to £20m. Its outdoor arm, which hosts its Blacks and Millets chains, was bought out of administration in 2012.

JD's executive chairman Peter Cowgill said: "We have decided that we must prioritise future investment in the sports fascias and consequently we believe that the sale of Bank is in the best interests of the group.

"We shall continue to support the broadest possible range of fashion brands within the group."