UK's JJB Sports goes into administration

02 Oct '12

2 min read

Appointment of administrators, sale of the business and cancellation of listing following receipt of final offers for the business and assets of JJB Sports plc and the suspension of the company's ordinary shares on 24 September 2012, the Company confirms the appointment of Brian Green, David Costley-Wood and Richard Fleming, partners of KPMG LLP, as administrators of the Company, of Brian Green and David Costley-Wood as administrators of SSL Retail Limited and of Brian Green, David Costley-Wood and Blair Nimmo as administrators of Blane Leisure Limited.

The Company also announces completion of the sale by the administrators of certain of the trade, assets and product brands of the Group to wholly owned subsidiaries of Sports Direct International plc ("Sports Direct") for cash consideration of £23.77 million, with up to a further £0.25 million of additional cash consideration payable after completion of a post-sale stock take.

Sports Direct will acquire 20 stores, substantially all of the stock in the business and the Slazenger Golf brand licences, as well as the Company's freehold property in Wigan. The remaining stores will not form part of the sale and the administrators do not intend to trade from these stores in the administration.

The net proceeds of the sale will be used to repay the Company's outstanding debt to its lender and other secured creditors. As previously announced, there will therefore be no value attributable to the Company's ordinary shares.

As a result of the appointment of administrators to the Company, Numis Securities has resigned as Nominated Adviser to the Company with immediate effect. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month, the admission of the Company's securities will be cancelled. The Company has no intention of appointing a replacement Nominated Adviser.

JJB Sports plc

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