Embattled JJB Sports has issued a holding statement to reassure investors following its share price slump and intense speculation about its future.

The retailer has also appointed Lazard as joint financial adviser.

JJB reiterated that it would update on trading next Wednesday, December 10, as planned and said: “The company continues constructive discussions with its debt providers, Barclays, HBoS and Kaupthing, who remain supportive.”

Discussions are ongoing about the potential sale of JJB's fitness clubs and non-core assets such as the Qube chain. However, the retailer warned: “There can be no certainty that any transaction will occur or as to the terms of any such transaction.”

Singer Capital Markets analyst Matthew McEachran said: “We believe that their£95 million facilities are still fully drawn despite being into the peak Christmas period, with weak trading and credit insurance withdrawal on suppliers exacerbating the working capital dynamics.”

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