JJB Sports is set to appoint administrators for its Original Shoe Company and Qube chains
JJB Sports said that a notice of intention to appoint administrators had been filed in court, after talks to sell the Qube and Original Shoe Company chains had not resulted in a deal. KPMG will be appointed as administrators.
Original Shoe Company sells branded lifestyle clothing and footwear in 64 stores while footwear business Qube has 13 stores.
JJB Sports said: “As previously announced, the board of JJB has for some months been reviewing its options in respect of the future of the Lifestyle division and a preliminary approach for the division, referred to in the company’s announcement of October 15 2008, did not result in a transaction.”
“The lifestyle division continues to trade at a substantial loss and the directors of each of OSC and Qube have decided to file notice of intention to appoint Fleming, Costley-Wood and Nimmo of KPMG LLP as administrators of OSC and Qube, respectively.”
JJB Sports said it was too early to comment on how suppliers to the two chains would be affected.
However, JJB Sports said it remained hopeful that a third party may become interested in acquiring the businesses.
The company said the administration does not affect any of the company’s other trading businesses.
Separately JJB Sports confirmed it was in talks to sell off its fitness clubs division.