JJB limps on after 83% share price plunge
THE value of JJB Sports crumbled to just 0.39p yesterday after shares plunged 83.5% after the troubled business was put up for sale .
The Wigan company, which has 180 shops and employs around 4,000 people, has debts of more than £30m but its stock market value is just over £1.5m.
The company’s board warned investors that while business advisers KPMG had been asked to market the company for sale. due to its debts: “there can be no assurance that any proposal or offer that may be made would attribute value to the ordinary shares.”
Many analysts and commentators now expect JJB to limp into administration in the coming weeks after running out of cash.
One-time suitor, Bury-based JD Sports Fashion is no longer interested such is the level of time and investment JJB would need to revive it.
However KPMG was more positive. David McCorquodale, the corporate finance partner leading the sale process said last night “It’s been a good first day, with expressions of interest from a mix of trade and private equity interested parties.”
The latest, and possibly fatal setback for the company came last month when it said poor summer trading meant it would need more funding to survive and implement another turnarond plan.
