JJB shares rise on offer news

RETAILER JJB Sports has seen the value of its shares rise after announcing a boardroom shake-up and confirming it has received an offer for its lifestyle division.

The company said it had received a preliminary approach for its lifestyle division, which includes Qube and Original Shoe Company.

It said there can be “no certainty” that a deal will be done. Reports have suggested Bury-based JD Sports Fashion has approached the group.

The Wigan-based group said former Next chief executive David Jones had become the new deputy chairman to focus on the retail operations. He previously held a non-executive directorship on the board.

Group property director, Barry Dunn, has left, “to pursue outside property interests”. JJB is now looking for a successor.

In a business update apparently designed to address recent speculation about the group’s future, the board said it had concluded negotiations on a £20m bridging facility from troublied Icelandic bank Kaupthing, “which is now fully drawn down”. Discussions are ongoing with JJB’s other debt providers HBOS and Barclays, “who remain supportive”.

JJB admitted it had lost some credit insurance cover but it, “remains confident of its trading relationship with its key suppliers who have been keen to support the company”. 

Non-executive chairman Roger Lane-Smith said: “I am confident that the steps we are taking will provide the stability to allow us to focus on our core activities. The group remains committed to these operations and is actively reviewing options for non-core assets.

“I am also pleased that David Jones has agreed to accept a new role. The company will benefit considerably from his enormous retail experience. I would also like to thank Barry Dunn, on behalf of the board, for his work at JJB. We wish him every success in the future.” 

Shares climbed around 8p to 31p.