JJB Sports puts itself up for sale

City A.M. Reporter
Struggling British sports goods retailer JJB Sports Plc put itself up for sale this morning, issuing a dismal statement that warned investors that their shares may be worthless.

Directors of the Wigan-based company, which throughout 2012 has been rocked by funding issues, falling sales and stiff competition, said they did not believe that the company would be able to raise the new funds required to stage a turnaround.

A formal sale process would begin, the company said, adding that organic sales slipped 3.3 per cent in the six weeks to 26 August.

"Given the level of current debt within the company, there can be no assurance that any proposal or offer that may be made would attribute value to the ordinary shares of the company," JJB said.

The company owes around £36.35m in total.