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.
You may also want to watch:
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 Ipswich U18s fall to second-half Liverpool goals - how the FA Youth Cup semi-final unfolded....
- 2 'Beautiful inside and out': Tragedy as mum dies 48 hours after giving birth
- 3 Mum-of-four with 'beautiful soul' dies after collapsing in the street
- 4 Steam locomotive back in Suffolk for anniversary trips
- 5 Former judge's widow on trial for sex abuse of young boy in 1980s
- 6 Stuart Watson's Verdict: Judge Chambers and Skuse's legacy by what their peers said
- 9 Woman taken to hospital after being hit by car
- 10 'Larger-than-life' Ipswich drama teacher Gloria Henshall dies
“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.