Two names familiar to our UK readership could be set to become one should takeover talks between JB Sports and JD Sports come to fruition, with JD sports ready to buy up the struggling Bury-based JJB.
JJB Sports has been in hot water for some time, as internet shopping and heavily-discounted stores like Sports Direct have forced store closures and seen their share value topple by over 80% in the past year.
It seems timely then, that competitors JD Sports could be set to make' a takeover bid for the struggling chain, which currently holds some 250 stores in it’s dwindling empire.
”The highly preliminary nature of these discussions is such that there can be no certainty that any offer will be made or as to the terms of any offer,” said JJB.
The possibilities of JJB surviving without a takeover seem to look dwindling, as the board of directors has been forced to plead with shareholders for £31.5m to pay off it’s highest creditors and keep the business going until March.
The emergency fundraising comes only a year after JJB staved off administration through a £100m equity raising and renegotiated leases.
As someone who bought many ‘classic’ football shirts, and some much-cherished Gunmetal Silver adidas Predator Mania football boots from JJB in his childhood, I’d be gutted to see JJB close it’s doors.
But without a doubt it’s in serious need of some help, what do you guys think would be the best move for JJB?
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