JJB Sports, the second-largest U.K. sporting-goods retailer, raised £3.4 million ($5.9 million) by selling a 5% stake in the company to Sports Direct International. Proceeds from the sale of 11.9 million new shares will be used “for general working capital purposes and to strengthen JJB’s financial position,” the Wigan, England-based retailer said in a statement.
In the statement, Chris Ronnie, JJB’s chief executive, said: “It will put JJB on a more secure financial footing and provides further flexibility for the board to take positive steps that provide stability for the group in this tough retail environment.”
KPMG International was appointed this month to advise JJB on short-term financing needs. JJB is considering the sale of some assets and said last week it had an approach for its Original Shoe Co. and Qube shoe stores. It also may sell its fitness clubs.
