JJB in fresh financial crunch

 

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The Independent Online

The troubled sportswear JJB Sports faces another battle to safeguard its future after a rapid deterioration in its finances.

The chain held a crucial board meeting last Thursday to examine its options. It is being advised by the accountancy firm KPMG, which declined to comment.

The meeting followed the arrival of Beverley Williams, a former director at the lingerie chain La Senza, as interim chief executive after the announced departure of Keith Jones.

JJB narrowly avoided collapse in 2009 and 2011 by implementing a company voluntary arrangement (CVA), an insolvency procedure. But, the company said on Friday:

“There are no plans for a [third] CVA.” One possible scenario is that Dick’s Sporting Goods – which gave JJB a £20m cash injection in April, may try to acquire the group earlier than anticipated. JJB’s net debt jumped to £17.7m in July, a rise of £2.3m in a just over a week.

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