Everlast has been at the centre of a takeover tussle

If agreed by the US firm's shareholders, the $30-a-share all-cash offer will trump a $26.50 all-stock bid from fellow American firm Hidary.

Everlast, which last month agreed to be bought by the investment fund, will now pay Hidary a $3m termination fee.

Sports Direct is owned by UK billionaire Mike Ashley.

Takeover spree

News of the bid for Everlast came on the same day as it was announced that Mr Ashley had increased his stake in Newcastle United to 93.2% - which will allow him to remove the football club from the stock market.

Mr Ashley, who launched his takeover bid for Newcastle in May, has been on something of an acquisition spree in 2007.

Earlier this year he also bought the Lonsdale sportswear brand.

Analysts said they expected the bid for Everlast to be successful, allowing Sports Direct - which has made the offer though its Brand Holdings subsidiary - to increase its presence in the US.