JJB sells gym unit to former boss

JJB has been in negotiations with banks including Barclays and HBOS

Struggling sportswear retailer JJB has sold its gym business to former owner Dave Whelan for an estimated £80m.

The deal should now allow JJB to renegotiate its £60m debt, and comes just hours after it missed a deadline to sign a new deal with its banks.

Mr Whelan, who sold his stake in JJB in 2007, said he would rename the 52 gyms DW Sports Fitness.

JJB had denied reports it was at risk of going into administration if it could not sell the JJB Fitness Clubs.

Stadium change

Mr Whelan is the owner of Wigan Athletic Football Club.

He added that the club's JJB Stadium would now be renamed the DW Stadium.

JJB's debtors include Barclays and HBOS.

The company has yet to comment on the sale.