Your browser is no longer supported. For the best experience of this website, please upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

JJB asks shareholders for a further £65m

JJB Sports is asking its shareholders for an additional £65m to support its survival plans.

The ailing sportswear chain said it was in “constructive discussions” with its major shareholders. JJB Sports chief executive Keith Jones visited the US two weeks ago to rally support from its biggest shareholder Harris Associates as well as the Bill and Melinda Gates Foundation.

The rights issue, which is vital to JJB’s revival plan, will be the retailer’s second this year following a £31.5m cash injection from shareholders last month.

JJB’s survival also hinges on the retailer securing a CVA. It plans to shed 43 stores by April 2012 and is reviewing the future of a further 46 stores which it will decide whether to close over the next two yearss. Creditors will vote on the CVA at a meeting on March 22.

Rival retailer JD Sports Fashion pulled out of takeover talks with JJB last week based on a “detailed assessment” of information in the public domain about its CVA proposal. JD Sports claimed JJB did not reveal key information about the business despite repeated requests.

JJB is expected to unveil its new business plan tomorrow, which will reveal that it plans to move away from discounting in a bid to cement itself as a mid-market sports specialist.

Readers' comments (2)

  • Hmmmm, mid market sports specialist???? That really is a £65m question.

    Unsuitable or offensive? Report this comment

  • Who would want to throw money at JJB? - surely this is financial suicide? And since when did it become a mid market sports specialist???

    Unsuitable or offensive? Report this comment

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Links may be included in your comments but HTML is not permitted.