Page last updated at 15:47 GMT, Tuesday, 10 February 2009

JJB firms set for administration

JJB Sports sign
JJB is looking to sell its Fitness Clubs business

Struggling sports retailer JJB has applied to place two of its subsidiaries into administration after failing to find buyers for them.

Footwear stores Original Shoe Company (OSC) and Qube have suffered from poor sales and have been trading at a loss.

The two chains' 77 stores will continue to trade as normal. Together, they employ over 800 people.

Earlier on Tuesday, JJB said it had received a number of indications of interest for its fitness club division.

"The directors of each of OSC and Qube have decided to file notice of intention to appoint Messrs Fleming, Costley-Wood and Nimmo of KPMG as administrators of OSC and Qube respectively," JJB said in a statement.

OSC, which operates 64 stores, and Qube, which operates 13, employ 270 full-time and 530 part-time employees.

Heavy losses

The retailer announced last month that its Lifestyle Division, which owns both OSC and Qube, would likely post losses of 15m for the year to 25 January.

Losses for JJB as a whole could be 10m, it said.

The company is considering the sale of its gym business, JJB Fitness Clubs, which operates more than 50 sites, in order to raise cash.

JJB is currently struggling to service loans from banks including Barclays, HBOS (now Lloyds Banking Group) and Kaupthing.

Print Sponsor


SEE ALSO
JJB bank deal to cost 8m in fees
19 Jan 09 |  Business
JJB set for loss as sales slide
14 Jan 09 |  Business
JJB Sports' retail sales plunge
10 Dec 08 |  Business
JJB Sports eyes assets sell-off
14 Oct 08 |  Business
Insurer withdrawal threatens JJB
07 Oct 08 |  Business
JJB hit by 'retail recession'
26 Sep 08 |  Business
JJB to pay replica shirt refunds
09 Jan 08 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites


FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific