JJB loses another life, as rival JD Sports declared it was no longer interested in acquiring the struggling business.
JD Sports were recently showing an interest in a takeover of the JJB Sports business. However, JD Sports have announced that they no longer have any interest in the beleaguered company.
This further setback for the Wigan based company, which is thought to be burning ‘Ĺ1 million per month, means that they are now further reliant on the landlords of their stores to offer them a lifeline by reducing rents and adjusting their payment plans. The JJB board recently made it abundantly clear that they will go bust unless they are able to significantly reduce their rent bills. Landlords are naturally concerned about further reducing their terms as this is the second time JJB have requested a reduction to keep the business intact.
JD Sports accused JJB of not supplying necessary information to enable them to put together a proposal. News which will infuriate the JJB shareholders who have repeatedly bailed the company out with further financing.
JJB issued a statement in response to the JD Sports complaint;
We welcome today’s clarification from JD Sports. JJB’s restructuring continues as planned with the whole management team focused on and committed to delivering a stable standalone future for JJB and its employees. The Board remains confident that with the support of our stakeholders we can achieve a successful turnaround of the business.
If JJB cannot turn their fortunes around they will likely go into administration, threatening 6,300 jobs.