Banks have given beleaguered sports retailer JJB Sports some breathing space by deferring its repayment of a £20 million bridging loan from Kaupthing, which had been due to be repaid next week.

Instead the retailer will today pay£20 million pro rata across its three banks, Barclays, HBOS and Kaupthing.

In a statement JJB said: “The banks are continuing constructive discussions with the company and are reviewing the company's plans and forecasts with a view to agreeing a basis for providing continuing support.”

In the period from July 28 to December 7, like-for-like sales at JJB were down 7.5 per cent excluding its loss-making Original Shoe Company and Qube chains.

This includes an 8.9 per cent decline in its retail sales against a 6.7 per cent uplift in revenue at its health clubs.

The stock holding in the retail business is 28 per cent lower than last year and JJB said that hitting market expectations for its pre-tax profits and exceptional items will depend on its January Sales’ performance.

To help secure its future JJB had been trying to dispose of some of its non-core retail businesses.

JJB said that it had received several enquiries regarding its health clubs business but a firm bid is yet to be confirmed.

Its Lifestyle division, including Original Shoe Company and Qube, continues to trade at a loss and the retailer continues to “consider its options” over the future of the division.

JJB non-executive chairman Roger Lane-Smith said: “During the period we have made good progress on a number of fronts in the face of the difficult trading conditions that have afflicted the entire high street.

"The economic outlook is challenging but I am confident that the work we are doing will put JJB in the best possible shape to trade through it.”

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