JJB up after reports of financing deal

James Thompson
Wednesday 04 April 2012 04:55 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

The market value of JJB Sports surged by more than half yesterday after the beleaguered sportswear chain said it was in talks with its bank and an unnamed "potential strategic partner" to raise additional financing.

The crisis-stricken retailer, which narrowly avoided administration in 2009 and last year, responded to a spike in its shares yesterday amid speculation it was in possible takeover talks. JJB said it had "held discussions with its lending bank and a number of potential strategic partners and investors about raising additional financing for the company".

The retailer added: "Constructive discussions continue with the company's lending bank and one of the potential strategic partners and have been widened to include other key stakeholders." This suggests the talks with a potential investor are advanced, if they have gone to shareholders about the negotiations.

JJB partly needs fresh funds for its store-refurbishment programme, which is progressing at a glacial pace, to drive its recovery. Its current talks over additional funds come despite JJB's battered shareholders ploughing £196m into the AIM-listed retailer via three fundraisings since October 2009.

While the potential investor in JJB was unclear last night, much speculation centred on JD Sports Fashion, which walked away from a possible takeover bid for JJB in March 2011. JD declined to comment last night.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in