Deathwatch? JD Sports mulling purchase of struggling JJB
The stalwarts of the high street are falling beneath the mighty axe known to us as "Credit Crunch, the slayer of shitty brands" and JJB looks to be the next victim on Crunch's roll call of death.
The news has been leaking that rival JD Sports is considering a take over of JJB. JD Sports already bought a 10% share of JJB last week for £8.1m (which is 8.1m times what Woolies was worth when it collapsed) and probably figures what the hell the names are close enough anyway, what's another J and a consonant swap?
The problems at JJB stem from listening to closely to financial pundits and going all-in with a £20m loan from Kaupthing.
The question remains whether JD Sports will be able to raise enough credit in the current conditions to buy out JJB and rival Sportsworld who owns a 22% stake in JJB.
TOPICS: High Street News