JJB Sports’ “potential strategic investor” has been revealed as US sports giant Dick’s Sporting Goods.
JJB Sports is understood to be in discussions to sell a significant minority stake to Dick’s, which has 500 stores in the US.
If a deal is to be done it will safeguard the future of the struggling sportswear retailer in the medium term. The retailer, which underwent a second CVA last year, had to raise nearly £100m from its existing shareholders in 2011.
The backing of sporting giant Dick’s would also give it more clout with major suppliers such as Nike and Adidas.
JJB revealed yesterday that it is in discussions about additional financing with both the “potential strategic investor” and its bank. The disclosure was made after the retailer’s share price surged.
It said: “Constructive discussions continue with the company’s lending bank and one of the potential strategic partners and have been widened to include other key stakeholders.”