JJB in talks with potential buyers

JJB Sports has confirmed it has received a number of bids for the business.

The beleaguered Wigan-based retailer was put on the market last month after it failed to persuade shareholders and suppliers to inject further funds to support its turnaround.

Unconfirmed reports have suggested at least 10 bidders have come forward, including the retailer Decathlon and the investment fund OpCapita.

The Wigan company which has around 4,000 staff and 200 shops appointed KPMG to conduct a formal sale process, but has warned shareholders that because the business has high levels of debt there is chance their investments could be rendered worthless.

In a stock market statement the firm said: “JJB has invited offers to support further investment in the company, which is most likely to involve a sale of the company or its assets.

“Following that announcement, a number of parties have submitted offers to acquire the whole or substantially all of the business and assets of the group.

“JJB continues to hold discussions with a number of parties but it is unlikely that any value will be attributable to the ordinary shares.”

In the six weeks to August 26 like-for-like sales decreased by 3.3% and the like-for-like cash margin decreased by 9.5%.