Deathwatch: JJB could be penniless by March

3 February 2011

retaildeathwatchJJB, 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.

JJBThe 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."

TOPICS:   High Street News   Debt


  • Nob
    Meh, won't miss them.
  • Internet T.
    Crap shop, they deserve to go
  • chavtastic
    Where will the chavs shop now - hurrah an end to baseball wearing skanky tracky botoomed - sh^tty white trainered cheap ass gold ring wearing scum.
  • Mark C.
    So all those 'closing down' sales will be genuine for once...
  • br04dyz
    I remember going in there once to take some trainers back after xmas.....I couldn't tell the difference between the staff in their joggers and caps and the punters!
  • Seb J.
    Worth noting that Keith Jones of DSGi fame is now CEO of this company haha, goes from one success to another does this guy....
  • Mike
    JD Sports is in talks over making a takeover bid for its High Street rival JJB Sports, the two companies have said.
  • Plug
    Crap shop, I agree - like a big fuck off sized jumble sale.
  • Andrew
    Quite sad for the towns where this is the only sports shop left!
  • Jen
    There are some people who do actually use trainers for running in :)
  • Charlie F.
    The business decissions and overall management is staggering. Just five years ago this was the place to go. I even emailed them to say I could do a better job myself! With the olympics coming up there is no reason for this company to be in such bad shape. However the finger sliped off the pulse, everywhere from primark to debanhams has a sports range now and JD looks classy Sports direct is cheap and JJB? JJB has lost it all, its placement, its niche, its reason. Just another shop with endless sales. This shop will not survive this year without a takeover or buyout. But they have annoyed there only offer from JD by closing stores! You have to hand it to JJB they know how not to run a business!
    [...] Sports, previously reported on for being broke, continues to struggle financially and is now asking for cheap rent from their [...]

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