JJB Sports has been handed a lifeline as banks have allowed its repayment of a £20 million bridging loan from Kaupthing to be deferred.
The company, which had been due to repay the loan next week, will instead this week pay£20 million pro rata across its three banks, Barclays, HBOS and Kaupthing.
In a statement released on Wednesday 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.”
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.
JJB said hitting market expectations for its pre-tax profits and exceptional items will depend on its January Sales’ performance. The retailer had also been trying to dispose of some of its non-core retail businesses but despite receiving several enquiries, a bid is yet to be confirmed.
In a statement released on Wednesday 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.”
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.
JJB said hitting market expectations for its pre-tax profits and exceptional items will depend on its January Sales’ performance. The retailer had also been trying to dispose of some of its non-core retail businesses but despite receiving several enquiries, a bid is yet to be confirmed.
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