Shares in sports store JJB rise as it confirms refinancing talks

 
City A.M. Reporter
SPORTSWEAR retailer JJB Sports, which nearly collapsed last year, said yesterday it was in ongoing talks with its bank and a mystery “potential strategic partner” to raise financing, sending its shares up 56 per cent to 16p.

“Constructive discussions continue with the company’s lending bank and one of the potential strategic partners and have been widened to include other key stakeholders,” JJB said in a statement.

A rent restructuring agreement with its landlords prevented JJB Sports from falling into administration a year ago. Recent trading updates have been more positive as JJB has worked to turn around the business ahead of a busy summer of sport.

JJB refused to name its possible partner yesterday. In a separate statement, JJB’s larger rival Sports Direct, controlled by Newcastle United owner Mike Ashley, said that it had held no talks with JJB, as a strategic partner or otherwise.