Investors back JJB share offer

SPORTSWEAR retailer JJB Sports has reported a 90% take-up of its open offer.

Earlier this month the Wigan-based group unveiled plans to raise £100m through a firm placing of 199.3 million shares and an open offer of 200.6 million shares.

In a stock market statement it said it had received valid acceptances for 181.4 million shares, or 90%.

This leaves 19 million shares which will be divided among those shareholders who said they would buy more than their initial allocation. JJB said there was demand for 59 million of these “excess shares”, three times the amount available.

The issue is expected to be approved today at a general meeting. If it goes ahead the shares will be admitted to the stock exchange on Tuesday.

JJB plans to use the £100m to spearhead a revival by revamping stores, buying new outlets and redesigning its website.

Meanwhile, the team of business recovery experts which led the rescue of JJB has won an industry award.

The work of KPMG’s Northern restructuring team at Wigan-based JJB was recognised at the  annual national Insolvency and Rescue awards, which named the deal the ‘Business Rescue of the Year’.

Brian Green, head of KPMG’s restructuring team in the North West, and Richard Fleming, KPMG’s national restructuring head, developed and were nominees of  a CVA deal, with landlords of closed stores, which was critical to JJB’s survival.

Kenny McKay, another partner in the Northern  team, was instrumental to the stabilisation and turnaround of the business

The KPMG team took the accolade in front of 400 restructuring professionals at the awards in London.