The Company also stated that in response to these issues it was in discussions with its strategic partners. Since the date of this announcement, in the six weeks ended 26 August 2012, like for like sales have decreased by 3.3% and like for like cash margin has decreased by 9.5%.
The Company has continued its discussions with its strategic partners regarding a further capital raising and restructuring of its store portfolio to facilitate the turnaround of the group's trading performance.
However, following these discussions, the Directors do not believe that the Company will be able to raise the level of funds required to implement the turnaround. As a result, the Board has decided to conduct a formal sale process of the Company and now wishes to invite offers to support further investment in the Company, which may result in a sale of the Company or its assets.
The Company proposes to conduct the formal sale process through its adviser, KPMG LLP, who should be contacted by any interested parties. There can be no certainty that a proposal will be forthcoming or that an offer will be made for the Company or as to the level of any proposal or offer that may be made.
As at 28 August 2012 net bank debt was £16.5 million. In addition, the Company has £18.75 million of Convertible Loan Notes outstanding and has also drawn down £1.1m under the trade loan facility.
Given the level of current debt within the Company, there can be no assurance that any proposal or offer that may be made would attribute value to the ordinary shares of the Company. The Board will update the market as to the status of the process in due course.
As announced by the Company on 9 July 2012, Bob Corliss will assume the role of Chairman with effect from 1 September 2012 and lead the Company through the sale process. Mike McTighe will stay on the board of directors as a Non-Executive Director until the conclusion of the sale process.
JJB Sports Plc
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