Struggling retailer JJB Sports has announced today that it hopes to raise £65 million in equity capital to help save the business.
While negotiations continue for its proposed company voluntary agreement (CVA), JJB has responded to press speculation over the extra funds needed to keep the firm out of administration.
It recently raised £31.5 million through creditors but the company has previously admitted that extra fund-raising along with an agreed CVA, which will see as many as 89 of its stores close in the next two years, to remain a going concern.
In a statement published today JJB said: “The Company currently expects the quantum of the proposed equity capital raising to be around £65 million and is in constructive discussions with its major shareholders in relation to their continued support.”
Further details of JJB’s business plan are set to be revealed tomorrow when it will hope to confirm that it has reached an agreement with its landlords.
Today’s statement follows a number of worrying events for the retailer, most recently the collapse of the proposed takeover by rival JD Sports which fell through on Friday.
An announcement on its CVA was delayed due to reluctance from landlords to the deal, with Capital Shopping Centres already going public in opposition.
Numis Securities Limited is handling JJB’s fund raising and is also organising transference of its shares from the London Stock Exchange to the less regulated AIM market.