JJB Sports plc confirmed that it has in recent weeks held discussions with its lending bank and a number of potential strategic partners and investors about raising additional financing for the company in what could be its third recapitalization since 2009. U.K.-based Sky News reports that the potential investor is Dicks Sporting Goods.
The sporting goods retailers disclosed the talks in response to movement of its share price and rumor regarding a potential takeover. The company
“Constructive discussions continue with the company's lending bank and one of the potential strategic partners and have been widened to include other key stakeholders,” the British company said. “There is no certainty that these discussions will result in the company reaching agreement for the provision of additional financing.”
A further announcement will be made in due course.
According to report on Sky News, the potential investor is Dick's Sporting Goods.
JJB, which operates more than 200 stores across the United Kingdom and Ireland, has raised more than £100 million in two capital raisings since 2010, when it began a major restructuring under its current chairman Mike McTighe. That included filing a company voluntary agreement with its landlords that enabled it to exit many leases.
The company reported an operating loss of £181.8 million on sales of £362 million for the year ended Jan. 30, 2011.
