JJB Sports said it intends to place two loss-making footwear subsidiaries into administration, a form of bankruptcy protection. JJB said its lifestyle division, which operates 64 Original Shoe Company Ltd. stores and 13 stores under the Qubefootwear Ltd. brand, continues to trade at a substantial loss.
KPMG LLP has been appointed as administrators of OSC and Qube. The two operations have 270 full-time employees and 530 part-timers.
Management said the LifeStyle division continues to trade at a substantial loss and the directors of each of the subsidiaries have filed a notice of intention to appoint administrators.
The Board remains hopeful a third party will become interested in acquiring the businesses.
In related news, a Reuters report indicates JJBs lenders have agreed to extend until March 16 the terms of a bank deal struck in December subject to the progress it makes on the sale of its Fitness Clubs unit. The extension will allow JJB to dispose of its Fitness Club business, which would allow the company to pay off most of its debt.
