UK: JJB confirms plans to call in administrators
AILING JJB Sports today confirmed plans to call in administrators after calling time on its long-running battle to rescue the business.
The move, which is expected in the next few days, is likely to be accompanied by the sale of certain parts of the business under a pre-pack administration, JJB said.
The company requested the suspension of its shares today and reiterated its previous warning that any offer for the company would not realise any value for shareholders.
JJB said it would continue to trade through all its retail outlets pending completion of the sale and administration process.
Newcastle United owner Mike Ashley’s Sports Direct business is seen as favourite to pick up a large chunk of the business, although the number of stores will depend on the stance of the competition watchdog.
As many as half of its 180 stores are expected to close in the sale process, threatening a large number of the 4,000 jobs at the firm.
JJB said it expected that KPMG would be appointed as administrators. It added: “The board has determined that any sale of the trade, assets and brands will be effected through an administration process.
- 1 Unclaimed £83k winning EuroMillions lottery ticket was bought in Suffolk
- 2 Greater Anglia warns of further severe disruptions as more strikes planned
- 3 Long-running BBC One show to be filmed in Suffolk church
- 4 Suffolk glamp site 'perfect for romantic retreats' named among best in UK
- 5 Revealed: Where house prices are rising fastest in Suffolk
- 6 Ipswich Town away shirt sales up by 138%!
- 7 Woman who stole £24k from school and football club to face sentence
- 8 Severe delays on A14 after lorry sheds load of sand on carriageway
- 9 Police concerned for welfare of missing Suffolk man last seen two weeks ago
- 10 A14 closed after crash involving lorry and car
“Therefore it is expected that the process to commence the appointment of administrators of the company and certain of its subsidiaries will begin today although the actual appointments are only likely to take effect just before the completion of any such sale.”
The group has been hit hard by the squeeze on consumer spending triggered by the financial crisis and by the stellar performance of rivals Sports Direct and JD Sports.
By late 2008 it was in a battle for survival and, despite shareholders with deep pockets, such as the Bill and Melinda Gates Foundation, numerous fundraisings and closing half of its stores, it has been unable to revive it fortunes.
It recently put itself up for sale and warned that shareholders were likely to be left empty-handed in any deal.
Former Blackburn Rovers footballer and Wigan Athletic owner Dave Whelan bought a single store in Wigan in 1971 before an aggressive expansion drive made JJB the UK’s biggest sports retailer with more than 400 stores. In 1994 the company was floated on the Stock Exchange.