Under-pressure sports retailer JJB Sports has announced today that rival JD Sports has withdrawn its interest in taking over the company.
The board of JJB has claimed that JD’s indicative proposal was unsatisfactory as it was highly conditional and lacking sufficient certainty to be deliverable.
JJB is currently seeking approval for a second company voluntary agreement (CVA), which the firm has confirmed it needs to avoid administration.
Mike McTighe, JJB Chairman, said: “We welcome today’s clarification from JD Sports. JJB’s restructuring continues as planned with the whole management team focused on and committed to delivering a stable standalone future for JJB and its employees.
“The board remains confident that with the support of our stakeholders we can achieve a successful turnaround of the business.”
JD initially showed an interest in taking over the beleaguered retailer last month and showed its expansion ambition in January when acquiring Ireland-based firm Champion Sports.
Group sales rose 2.5 per cent over Christmas for JD, whilst below expectation trading at JJB over the same period led to it having to renegotiate credit facility obligations.
If JJB’s CVA is passed as many as 89 of its stores could be closed in the next two years, and the board reaffirmed today that it anticipates to provide further details of its revised business plan on March 15th.