JJB Sports to raise £100m

JJB Sports has said it is continuing to finalise arrangements to raise £100m through selling more shares. The company had delayed the fundraising whilst its board investigated rumours about executive chairman Sir David Jones’ personal financial affairs. But the board said it was satisfied there was no truth in the reports.

JJB added that it was concerned by the timing and nature of the allegations, and said it had passed the details to the regulatory authorities. JJB said it was pleased with the interest shown by investors in its capital-raising plans, saying it had indications of interest “in excess of three times the size of the proposed capital raising”.

Observers say it will use the money raised to revamp shops and buy stock. Wigan-based JJB has said it wants to focus on sportswear rather than fashion, and to avoid being seen as a discount retailer such as rival Sports Direct.

JJB made a £42.9m loss in the six months to July, compared with a deficit of £14.8m in the same period a year ago. When it reported the results it told the City it had been close to going into administration and had only been saved after striking a company voluntary arrangement (CVA) with its landlords.

JJB, together with Sports Direct International, is being investigated by the Serious Fraud Office (SFO) over a suspected sports retail cartel.

The SFO’s investigation was focused on individuals, not the company, JJB has said.

Image: Shop logo
Source: BBC

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