JD Sports Fashion has splashed out more than £8 million on a 10% stake in JJB Sports.
JD Sports Fashion said in a statement it had made the investment because of JJB’s “important place in the performance sports retail market”.
Last month JD Sports Fashion was linked to a deal to buy JJB Sports’ lifestyle business, which includes the Original Shoe Co and Qube chains.
JJB yesterday confirmed it had received an approach to purchase its fitness gym business. Reports this morning linked JJB founder Dave Whelan to a possible purchase of JJB’s health clubs in a deal valued at around £100m.
A sale of JJB’s health clubs would give the sports chain a lifeline. JJB is reported to need around £20m to pay back a bridge loan to Kaupthing, the Icelandic bank that collapsed several weeks ago.