JJB planning sell-off
JJB Sports has announced it is considering the sale of parts of its business.
The statement follows weeks of speculation over the future of the troubled Wigan-based retailer.
In a statement released to the stock exchange this morning the group said: “The company is undergoing a review of the potential sale of one or more of its non-core assets and businesses to maximise shareholder value. Discussions are ongoing in this regard.
“There can be no certainty that any transaction will occur or as to the terms of any such transaction. A further announcement will be made when appropriate.”
Turnaround specialists from the accountancy firm KPMG have been called in and could be looking at the disposal of some of JJB’s fitness clubs.
Reports last week said an unnamed buyer may be willing to pay as much as £100m for the 61 clubs, compared to JJB’s current market capitalisation of £45m.
The company has had a torrid time since unveiling half-year losses of nearly £10m. Its share price has dived from around £1.50 to 18p in a year and it has recently faced the withdrawal of insurance cover for suppliers to the chain.
JJB, which has some 400 shops, has also been forced to refute claims – made by its own auditor – that it had breached banking covenants.
