Crystal Amber Fund, one of JJB Sports’ largest shareholders, has divested over half of its shares in the sportswear retailer but will support the proposed capital raising.
Crystal Amber sold 22 million JJB Sports shares on Friday. It now has a 5.45% stake in the company.
Crystal Amber chairman William Collins said: “We have been actively involved with recent developments at JJB and welcome the proposed fundraising.
“We intend to continue to play a full role in helping JJB with its recovery programme. Following the placing, JJB will remain the largest holding of Crystal Amber and we retain a significant shareholding in JJB’s much enlarged capital base.”
The news followed a raft of newspaper reports about the retailer and the dealings of its directors.
This weekend, The Sunday Times reported that JJB’s former chairman Roger Lane-Smith spent a week last autumn at JJB founder Dave Whelan’s Barbados holiday home and had a poolside meeting with JJB Sports’ former chief executive Chris Ronnie where the terms of a possible sale of its gyms business were allegedly discussed.
Chris Ronnie, who was sacked from JJB Sports earlier this year, has meanwhile said he is entitled to immunity from prosecution if the Office of Fair Trading, which is among five organisations investigating the firm, finds evidence JJB Sports was colluding with rival Sports Direct to fix prices.
It has also been reported that current chairman Sir David Jones and members of his family had been threatened with violence as a warning against going ahead with its £94m fund raising.
A spokesman for JJB Sports said: “All of the events of last week have been reported to the relevant authorities.”