Sale of JJB businesses uncertain

BELEAGURED retailer JJB said today there is no certainty that a sale of its gym business or other non-core assets will take place.

In a statement to the stock market, it added that it had noted the recent fall in shares, which yesterday plunged further after it was revealed the Office of Fair Trading is investigating Sports Direct’s move in October to buy a 20 per cent stake in JJB.

Shares have slumped more than 90 per cent in recent months amid concerns over the group’s financial health.

JJB added that it continues “constructive discussion” with its debt providers, Barclays, HBOS and Icelandic bank Kaupthing “who remain supportive”.

The group, which will update the market further next Thursday, said: “Discussions continue in relation to JJB’s fitness clubs and other non-core assets and businesses.

“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.”