Tuesday, September 26, 2017

JJB sees interest from “a number of parties”


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.”


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