JD Sports Fashion has announced it has no intention to make an offer for JJB Sports, claiming JJB has failed to reveal key information about the business.

Last month JD Sports Fashion revealed it was in early stage discussions with JJB in relation to making an offer.

However, it has now announced that despite requests, it has not had any information from JJB since the start of February.

It has decided not to make an offer based on a “detailed assessment” of information in the public domain in JJB’s Company Voluntary Arrangement (CVA) proposals.

JJB intends to shut 43 stores on or before April 24 next year, and to keep another 46 under review until the same date in 2013. The retailer will pay landlords 50% of the contractual pro rata monthly rent ahead of closure and other sums.

Earlier this month JJB confirmed its second CVA to ensure the survival of the business. JJB said it had an “open and constructive dialogue” with its major landlords, which together account for about 40% of the retailer’s annual rental payments, regarding the future shape of the group’s property portfolio.

The retailer said its future viability was “dependent upon the successful implementation of a CVA”.  

JJB said that if it did not secure its £30m fundraising proposed and the CVA it would “no longer be able to trade as a going concern which would result in the appointment of receivers, liquidators or administrators”.

JJB chairman Mike McTighe said: “We welcome today’s clarification from JD Sports. JJB’s restructuring continues as planned with the whole management team focused on and committed to delivering a stable standalone future for JJB and its employees. The Board remains confident that with the support of our stakeholders we can achieve a successful turnaround of the business.”

Topics