Struggling sports retailer, JJB Sports, has put itself up for sale following a slide in sales amid stiff competition, but the chain warned investors that any rescue deal may render their shares worthless.
Wigan-based JJB, which has 4,000 staff and 180 shops, has issued a string of profit warnings as sales slid amid tough competition.
It was thrown a lifeline in April when Dick's Sporting Goods invested £20m in the chain, but earlier this month, the US retailer wrote off that investment because JJB's performance had "materially deteriorated".
Earlier this month, private equity veteran Jon Moulton made an approach to JJB in an attempt to take control of the ailing retailer; that approach came days after Invesco, the biggest shareholder in JJB, was linked to a plan to buy the retailer's debt in a move to seize control.
Keith Jones, JJB chief executive since 2010, announced in July that he would step down. He was replaced on an interim basis by Beverley Williams, the former boss of the La Senza lingerie chain, while American retail veteran, Bob Corliss, was brought in as chairman to support a turnaround of the business.
JJB on Thursday said that Mr Corliss would lead the company through the sale process. The decision to sell the retailer followed a warning last month that a deterioration in trading was likely to accelerate the timing of additional funding required by the company. Since that July statement, sales have fallen 3.3pc in the six weeks ending August 26.
Shares in JJB slumped 1.64 to 0.73p in early trading on Thursday morning.
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