Deathwatch: JJB could be penniless by March
JJB, the sportswear chain, have said that they are perilously close to running out of money in March and that, without "immediate interim financing", they might just disappear altogether.
What are people in Wigan going to do when they need to buy clothes now?
It appears that JJB need a quick lifeline to keep them in business while they attempt to raise £30m+ from shareholders in April. This money is on top of the £31.5m that the company is currently scraping together to keep them ticking over.
The Telegraph reports that JJB doesn't have sufficient working capital for present requirements and that the money they're currently raising won't address medium and longer-term needs. If cash flows are lower than hoped, then the company could be penniless by March. In a bid to keep the company going, JJB is looking at changing their business model, which probably means store closures or a Company Voluntary Arrangement (CVA) with landlords.
JJB say: "To the extent that the company is unable to secure further support from any relevant key stakeholders or other sources of finance in the context of a further equity capital raising... the company will no longer be able to trade as a going concern, which would result in the appointment of receivers, liquidators or administrators."