Page last updated at 11:18 GMT, Thursday, 19 February 2009

JJB Sports firms shed 438 staff

JJB Sports sign
JJB has been in protracted negotiations with its creditor banks

The administrators of two fashion and footwear firms owned by JJB Sports - the OSC and Qube chains - are cutting 438 jobs.

The redundancies are a result of the closure of 37 of the 64 OSC stores and eight of the 13 Qube stores.

JJB applied to put the subsidiaries into administration last week after failing to find buyers for them.

It is also considering the sale of its gym business, JJB Fitness Clubs, which operates more than 50 sites.

OSC STORES CLOSING
Ashton-under-Lyne, Barnsley, Barnstable Green, Barrow, Birkenhead, Blackpool, Bolton, Burton, Derby, Dumfries, Dundee, East Kilbride, Edinburgh, Falkirk, Galashiels, Glenrothes, Gloucester, Grimsby, Halifax, Hamilton, Harrogate, Kingston upon Thames, Leeds, Londonderry, Northampton, Nuneaton, Parkhead, Perth, Plymouth, Preston, Sheffield Meadowhall, Stirling, Sunderland, Telford, Torquay, Wakefield, Warrington

"It has been well documented that both companies have been running at a substantial loss in the wake of extremely tough trading conditions on the High Street," said one of the administrators, Richard Fleming of KPMG.

"Unfortunately, these losses have left us with little option but to close 45 of the stores upon appointment."

In addition to the jobs cut in stores, nine members of staff have been made redundant at the head office in Wigan.

The administrators said that 413 staff remain across the 27 OSC and Qube stores that are still trading and at the head office.

QUBE STORES CLOSING
Ballymena, Bury St Edmunds, Carlisle, Falkirk, Maidstone, Margate, Telford, Wrexham

JJB has been trying to renegotiate its debt with its key banks: Barclays, Iceland's Kaupthing and HBOS.

The retailer has a standstill agreement with its banks, which has delayed the dates when certain loans have to be repaid, but that agreement is subject to the banks being satisfied with progress towards the sale of the fitness business.

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SEE ALSO
JJB firms set for administration
10 Feb 09 |  Business
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

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