JJB Sports is to launch a £100m equity issue in the latest phase of its turnaround battle following its CVA earlier this year.

The retailer said arrangements for the fundraising – which is greater than expected - are being finalised and a further announcement would be made in the near future.

JJB has embattled for most of the year. The retailer put its footwear operation into administration and only the success of its CVA saved the main business form collapse. The retailer has had to renegotiate terms with its banker, Royal bank of Scotland, and has been undermined by a lack of stock, which in turn held back sales.

Singer analyst Matthew McEachran said: “The quantum of new cash being raised is a surprise, not least as management outlined at the recent interim results that initial relays to the store portfolio were being achieved on a low capex requirement and given that the issue of stock intake was said to be one of supply chain lead times rather than funding.

JJB, which earlier in the year parted company with controversial former chief executive Chris Ronnie, is being run by executive chairman Sir David Jones until a new chief executive is found.

McEachran said: “With a new chief executive yet to be announced and a capital refit plan yet to be outlined, there remains a lot of uncertainty around the recovery profile.”

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