"Treasury helped Whelan rescue frozen cash"
THE Government has helped North West businessman Dave Whelan recover £50m from a collapsed Icelandic bank, reports said today.
The former chairman of Wigan-based JJB Sports will use the cash to make a £70m bid for the ailing company’s 52-strong health clubs chain – which have been put up for sale to reduce bank debt.
The veteran retailer, 72, enlisted the help of Wigan MP Neil Turner, who appealed to Chancellor Alistair Darling, who resolved the matter within just two hours.
It emerged last week that Mr Whelan was in exclusive talks over he health clubs deal, which should safeguard 12,000 jobs.
Mr Whelan will rebrand the health clubs and the shops they are connected to as DW Fitness Clubs and DW Sports.
Around £50m of Mr Whelan’s personal fortune was on deposit with Icelandic bank Kaupthing when it collapsed last year. Wishing to help Mr Whelan support local jobs, Labour MP Mr Turner stepped in to help.
As a result of the anticipated sale, JJB Sports, which is now being led by former Next chief Sir David Jones – is now expected to secure a third extension to the standstill agreement with its banks, which expires today.
The ailing retailer, which has seen its share price collapse in the last 18 months, will be able to pay down £60m of debt.
