JJB Sports is to launch an equity issue to raise £100m, five months after it completed a CVA.
JJB Sports said that arrangements for the fundraising, which is greater than expected, were in the process of being finalised.
JJB has had a difficult year. It put its fashion lifestyle division, which included the Qube and Original Shoe Co chains, into administration earlier this year and lost its chief executive Chris Ronnie. It has also struggled to maintain stock levels, which has held back sales dramatically.
Singer analyst Matthew McEachran said: “The quantum of new cash being raised is a surprise, not least as management outlined at the recent interim results that initial relays to the store portfolio were being achieved on a low capex requirement and given that the issue of stock intake was said to be one of supply chain lead times rather than funding.
JJB sports, which is being run by chairman Sir David Jones, is still searching for a replacement chief executive.
McEachran said: “With a new chief executive yet to be announced and a capital refit plan yet to be outlined, there remains a lot of uncertainty around the recovery profile.”