JJB Sports appoints administrators to save brands and assets

Sports Direct, owned by Mike Ashley, is understood to be the favourite to step in and buy the assets of JJB Sports, after JD Sports reportedly dropped out the running.

JJB Sports launched a sale process on 30 August and has subsequently held discussions with a number of interested parties, which have now submitted their final offers.

Based on the offers received, JJB has suspended trading of its shares after ruling they have no value.

JJB announced its intention to appoint administrators this morning (24 September) because the board has not received any offers for its shares to date and does not expect to receive any in the future.

All JJB's retail outlets will continue to trade, while the administrators seek to find someone to save the business.

KPMG partners Brian Green, David Costley-Wood and Richard Fleming have been proposed as administrators.

JJB is hoping to announce a sale of the trade, assets and brands of the group within the next few days.

The struggling sports retailer is appointing administrators after it failed to successfully pull off a financial restructure that it launched last year.

JD Sports was in takeover discussions with JJB Sports prior to the restructure, but ended the talks after the financial restructure was announced.  

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This article was first published on marketingmagazine.co.uk