UK sports retailer JJB goes under

Greg Gille
@unquotenews
25 September 2012

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Ailing UK-based sporting goods retailer JJB Sports has called in administrators and is likely to be sold in a pre-pack deal.

Turnaround specialist Better Capital was rumoured to be circling the company earlier this summer as JJB was looking for a potential buyer, but ultimately did not submit a bid.

Trading for JJB shares – which were valued at up to £1bn a decade ago – was suspended on Monday. KPMG was officialy appointed as administrator later in the day.

JJB rival Sports Direct is now tipped as a likely pre-pack buyer but concerns are growing over the future of many of JJB's 180 stores and of its 4,000 employees.

Other suitors are notably understood to include restructuring specialist OpCapita, which acquired another troubled UK high-street business, videogames retailer Game, earlier this year.

Founded in 1971, JJB is a sports clothing and equipment retailer. Facing stiff competition from the likes of Sports Direct and JD Sports, the company's financials have rapidly deteriorated in recent years. It is now believed to be struggling with a £36m debt burden and posted a £100m loss in 2011.