2,200 jobs go as JJB goes into administration

MORE than 2,200 jobs have  been lost at JJB Sports, the Wigan-based retailer, administrators KPMG said today.

KPMG said it had sold 20 JJB’ outletsand all the stock and some brands to competitor Sports Direct for £24m, securing 550 jobs. The remaining 133 shops will close.

Sports Direct has also acquired the freehold of JJB’s head office and warehouse at Martland Mill in Wigan, securing 228 jobs in the warehouse, but 150 head office staff have been made redundant.

Richard Fleming, UK head of restructuring at KPMG, said: “Successive attempts to restructure the business, both financially and operationally, have not been enough to prevent the company falling into administration.

“Unfortunately a buyer could only be found for 20 stores on a going concern basis.  All staff made redundant as a result of store closures have had their arrears of wages and holiday entitlements paid in full.”

David McCorquodale, corporate finance partner who led the sales process, added: “In spite of the severity of financial distress suffered by the business, we spoke with over 100 parties in the first few days of our appointment; with eight trade and private equity players tabling first round bids.

“Unfortunately the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties.  We hope to be able to sell the leasehold interests of some of the remaining stores, which may result in re-employment of some staff.”

The administrators have set up a 24 hour helpline for employees: 0845 3022538.

KPMG said around 160 people, including 40 at the head office, had been retained in the short term to assist the administrators. Among the stores which have been acquired are JJB’s shops in Liverpool and Rochdale.

See also: JJB’s rapid and painful fall from grace 
Sad but not surprising: Game over for JJB .