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Senior management at JJB Sports has admitted that the company, with around 180 stores, has been put up for sale, endangering 4,000 jobs.
A plan to turn around the company’s fortunes by rebranding as a specialist sports business has ended in failure amid strong competition in the sector. Consequently, JJB Sports’ shares have plummeted to the point where they are almost worthless. The company owes more than £36 million and sales continue to fall as news of its financial situation becomes known.
US company Dick’s Sporting Goods has practically written off a multi-million pound investment it made this year in JJB Sports because of the level of debt that the business has.
KPMG, which is administering the sales process, expects strong interest from other buyers and it is anticipated that businesses such as JD Sports and Sports Direct will be interested in some of the store sites. However, it is a woeful end to the business, which was once worth around £500 million. A spokesman at brokers Charles Stanley suggested that JJB Sports would go through a similar process as that experienced by Blacks Leisure, where administration would be followed by a sale of parts of the company.
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