Troubled sports chain JJB Sports is expected to ask investors for a further £50m following the £31.5m promised before Christmas, according to reports.
On Christmas Eve, JJB secured £31.5m from shareholders after it warned it would miss forecasts and potentially breach the terms of a £25m loan. It signalled that it would address its long-term financial requirements once it had drawn up a new strategy.
JJB’s two largest shareholders, Harris Associates and Crystal Amber supported the £31.5m financing. The Bill & Melinda Gates Foundation also lent their support to the fundraising, which resulted in JJB’s lender Bank of Scotland waiving January covenant tests on the £25m loan.
The retailer has also undergone a management restructure, with chairman John Clare last month replaced by turnaround specialist Mike McTighe.
JJB has suffered declining sales in recent years after being squeezed by rivals including Sports Direct.