More than 130 JJB Sports stores have closed down resulting in 2,200 redundancies, the company's administrators have said.
KPMG confirmed Sports Direct bought just 20 of the troubled retailer's stores, its brand and website for £23.77m.
Up to a further £250,000 will be paid after the completion of stock-taking, it added.
The deal saves around 550 jobs in the UK, including at the company's warehouse.
KPMG's Richard Fleming said attempts to restructure the business had failed.
"Unfortunately a buyer could only be found for 20 stores on a going concern basis," he said.
"All staff made redundant as a result of store closures has had their arrears of wages and holiday entitlements paid in full.
"Our team of employment specialists will be supporting staff on completing redundancy forms and putting them in touch with job seeker services.
"We will now be reviewing what options are available for the remainder of the business."
JJB Sports put itself up for sale last month, but shareholders were warned they were likely to be left empty-handed.
Shares in the company, which has been making a loss 2009, were suspended last week.
Wigan Athletic owner Dave Whelan bought the first JJB store in Wigan in 1971 and rapidly expanded the company to become the UK's biggest sports retailer with more than 400 stores.
It was floated on the London Stock Exchange in 1994.
: JJB Sports employees can call a 24-hour helpline on 0845 3022538.