To help fund the retailer’s revised business plan, JJB Sports has today launched its plans to create £65 million through a capital raising scheme.
The proposed share placing will create 162,500,000 new ordinary shares at an issue price of 40p per share and has the support of its four biggest shareholders.
A similar scheme raised £31.5 million for JJB at the start of the year, with this latest cash call getting the go ahead once the retailer had passed its Company Voluntary Agreement (CVA) last month.
Mike McTighe, Chairman of JJB, commented: “After the approval of our CVA proposals by creditors and shareholders in March, I am delighted that we are today confirming the details of this capital raising with the support of our four largest shareholders.
“Together with the implementation of the CVA and continued availability of our banking facilities with Bank of Scotland, this fundraising will mark the end of our financial restructuring process.”
JJB’s CVA was passed by 99.9 per cent of its creditors, enabling the company to reduce its rental payments and close a number of stores over the next two years.
The new business plan will see 43 loss-making stores closed in the next year and a further 46 put under review with possible closures planned in 2012.