JJB founder winds down with £50m share sale

David Whelan, the founder of JJB Sports, has sold shares worth £50m in the retail chain, apparently to help him prepare for old age. The sale of the 8.6 per cent stake cut Mr Whelan's holding to 29 per cent.

Mr Whelan bought into the business in 1971, when it had just one outlet. He floated the company in 1994, when its total valuation was around the amount he raised yesterday.

JJB has been subject to bid speculation, which has driven the shares up, but Mr Whelan's remaining interest still represents a formidable obstacle to any potential buyer.

Mr Whelan, a former professional footballer, owns the Premier League football club Wigan Athleticand Wigan Warriors rugby league club.

Mr Whelan sold 20.5 million shares at 245p through a placing. JJB shares closed 4 per cent down at 248.5p. JJB said he was selling the shares for "personal financial reasons". Industry sources suggested that, as he had just turned 70, he was getting his financial affairs in order, and also that he wanted to diversify his assets.

Mr Whelan stepped down as chairman last year, but remains an executive director.

JJB has 439 stores, providing 4.4 million sq ft of retail space. This month, the company reported a 6.3 per cent rise in underlying sales for the 22 weeks to 31 December, including a 5.4 per cent rise over Christmas.