JJB Sports set to raise extra funds

Struggling sportswear retailer JJB Sports has confirmed it is considering selling shares to raise extra funds.<br /><br />The group, which has been undergoing a rescue turn-around led by retail veteran Sir David Jones, confirmed it was &ldquo;reviewing a range of possible options to provide additional capital.&rdquo;<br /><br />It is understood that JJB Sports is looking to raise at least &pound;50m in a placing and open offer of shares at 12p each - a 61 per cent discount to Friday&rsquo;s closing price of 30.75p. <br /><br />JJB Sports still urgently needs working capital to reinvigorate the firm which has tinkered on the brink of collapse.<br /><br />The group was given a life-line in March from the sell-off of its&nbsp; fitness chains to group founder Sir Dave Whelan. Under the terms of the &pound;83.4m gym chain deal, JJB Sports used the funds to secure a company voluntary agreement with landlords to not pay rent on 140 already closed stores. This then allowed the group to successfully complete its &pound;50m refinancing and&nbsp; end its standstill agreement with Barclays and Lloyds Banking Group, marking&nbsp; the end chapter of the group&rsquo;s recent struggles.<br /><br />JJB yesterday said the lease assignment process in relation to the sale of its fitness clubs business to founder Dave Whelan was ahead of plan.<br /><br />It added it also expects to repay a short-term &pound;25m loan to Barclays ahead of its payment date of 31 August.<br /><br />The company, which recently reported a pre-tax loss of &pound;189.2m in the year to 25 January, warned investors to not expect a recovery in trading until the fourth quarter of this year.