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WILL JJB SPORTS BE ABLE TO RECOVER FROM THIS SET BACK?

<strong>NICK BUBB </strong> PALI INTERNATIONAL<br />News of the deeply discounted rights issue has obviously hit the group. I&rsquo;m not too surprised by that. JJB&rsquo;s rival Sports Direct reports trading figures next week and this &lsquo;loan leak&rsquo; is designed to hurt Sir David Jones&rsquo; reputation and therefore hurt JJB&rsquo;s abilitiy to raise money and fight back &ndash; it&rsquo;s a logical reason for the leak.<br /><br /><strong>SAM HART </strong> CHARLES STANLEY<br />As far as I&rsquo;m aware the company does need to arrange additional financing to continue to survive in the long-term, so any successful capital raising will aid the group. But the group continues to be in a messy situation and the fact that it is still not financially secure will have provoked some concerns.<br /><br /><strong>JOHN STEVENSON </strong> KBC PEEL HUNT<br />After an extended period of under-investment and a short period of questionable management, JJB&rsquo;s current management team is arguably the strongest the business has seen in terms of retail experience. But, any turnaround plan remains limited by the group's &pound;25m working capital facility, which is barely sufficient to re-stock.