OFT probe into sale of failed JJB's shops
Sunday 16 September 2012
Mark Leftly, James Thompson
The Office of Fair Trading is expected to investigate any attempt by Sports Direct to snap up the 180 stores owned by JJB Sports, which is expected to file for administration later this week.
Mike Ashley's sportswear giant is thought to be the favourite to acquire the remnants of JJB, though the Newcastle United owner is interested in fewer than 50 of the stores.
Even with additional interest from JD Sports Fashion, it is considered likely that more than 100 shops will close, resulting in the loss of at least 2,000 jobs. JD has been interested in taking over JJB since at least early last year, when the parties were in early-stage takeover talks that came to nothing.
JJB is almost certain to appoint administrators this week in a pre-pack deal, which will allow a new owner to buy it out of technical insolvency with fewer shops and far less debt. Over the past four years, investors have pumped more than £225m into the business, which has struggled badly as families tightened their wallets.
The OFT has previously looked into Sports Direct's interests in JJB, including store sales. Sports Direct also owned a stake in JJB, though this was sold three years ago.
If, as expected, JJB files its notice of intention to appoint administrators this week, there will be 10 working days to secure a rescue deal.
- 1 Venezuela Expo Tattoo 2015: Extreme body art from 'Vampire Woman' to 109mm earlobes
- 3 Ball pool for adults opens in London
- 4 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Putin opponent reveals Russian President's daughter's secret identity
Ball pool for adults opens in London
Gay couple buy JebBushForPresident.com web domain, and refuse to sell
16 Waitrose customers who could not cope with the end of free coffee
9 reasons Greece's experiment with the radical left is doomed to failure
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
King Abdullah dead: We can't afford not to hold Saudi Arabia's royals to account
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...