JJB shares up on Bill Gates' move

JJB is seeking to raise cash

Shares in troubled retailer JJB Sports have risen sharply after Bill and Melinda Gates's charitable foundation increased its stake in the company.

The foundation upped its stake to 3.14% from 2.82%, sending shares in the Wigan-based firm to end 12% up at 28p.

The trust, started by the Microsoft founder and his wife, helps charities across the world.

JJB has been seeking ways to raise funds as it has suffered from tighter profit-margins and lower sales.

In May, JJB reported an annual loss and sharp fall in sales. It has been considering asset sales and a rights issue in order to raise extra funds.

JJB has been surrounded in controversy after it emerged that the firm's chairman, Sir David Jones, took a loan from Mike Ashley, the founder and majority shareholder of its main rival Sports Direct.

There were concerns that the loan could amount to a conflict of interest.

JJB has already sold off its gym business to former owner Dave Whelan to raise cash.

The Gates Foundation also holds stakes in other retailers; last year it increased its stake in Carpetright to 5% via its private investment arm Cascade.

It seeks way to invest money in order to then have funds to invest in charitable work, notably in projects addressing education, health and poverty.