Sunday, December 17, 2017

JJB sees interest from “a number of parties”

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Struggling sports retailer JJB Sports has seen interest from “a number of parties” as it seeks to secure investment, it has been announced.

At the end of last month, the sportswear specialist announced that it was up for sale as a result of poor trading and is being advised by KPMG.

The news follows a £30 million investment earlier this year that was injected into the business by shareholders as well as US retailer Dick‘s Sporting Goods, which wrote off the value of its £10 million investment in five months claiming that it had “no further funding obligations to JJB.”

In an increasingly competitive market, JJB has stumbled while rival Sports Direct revealed last week that group sales have jumped 25.3 per cent to £519 million in its last quarter, a firm financial position which has led to speculation that Sports Direct may be looking to invest in JJB.

A statement from JJB said: “A number of parties have submitted offers to acquire the whole or substantially all of the business and assets of the Group.

“JJB continues to hold discussions with a number of parties but it is unlikely that any value will be attributable to the ordinary shares. A further announcement will be made in due course.”