JJB confirms offer for its fitness clubs

SHARES in JJB Sports rose this afternoon after the group confirmed it was in talks with a buyer for its fitness clubs division.

In a statement to the stock exchange the group, which operates a national network of 60 clubs, said, “there can be no certainty a transaction will occur”. Shares rose more than 6% to 34p on the news.

Last month Wigan-based JJB received an offer for its lifestyle division which includes the shops Qube and the Original Shoe Company.

There has been speculation over the fitness clubs since JJB called in turnaround experts from KPMG in early October.

The company has had a torrid time since unveiling half-year losses of nearly £10m in September. Its share price has dived from around £1.50 to 18p in a year and it  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.