Beleaguered JJB in fresh funding talks
JJB Sports has confirmed that it is in talks with potential investors about bringing in new sources of funding following a spike in its share price.
The company’s shares have climbed by around 36% today to 14p a share as rumours about a potential offer for the company emerged.
A statement issued by the Wigan-based company’s board confirmed that it “has in recent weeks held discussions with its lending bank and a number of potential strategic partners and investors about raising additional financing for the company”.
It said that talks with its bank and one “potential strategic partner” were continuing and had been widened to include other stakeholders.
It added: “There is no certainty that these discussions will result in the company reaching agreement for the provision of additional financing.”
TheBusinessDesk.com understands that competitor JD Sports was among the interested parties regarding a potential injection of fresh capital but it is no longer pursuing its interest.
JJB Sports has undergone a number of restructurings over the past three years, including two Company Voluntary Arrangements and a number of rights issues in a bid to stabilise the business.
