JJB Sports Plc, the UK sporting goods chain, said it expects a loss before tax and exceptional items between £5 million and £10 million ($7.31 million to $14.62 million) in its year ended Jan. 25. The loss excludes any costs associated with its banking facilities
Within this result the LifeStyle division (the Original Shoe Company and Qube) was expected to incur losses of about £15 million . Options regarding the future of the LifeStyle business were also being considered.
JJB said that over the five weeks to Jan. 11 group sales at stores open at least a year were 6.8% lower than during the same period last year. Comps were down 8% at the group's retail stores and up 8.4% at its health clubs business, which was now up for sale.
Last month, JJB agreed with lenders Barclays, HBOS and Kaupthing that a £20m bridging loan from Kaupthing need not be repaid in full by mid-December. JJB instead paid out £20m to be shared between the three banks.
JJB said net debts at the end of January would stand at just under £60m, with “constructive” talks aimed at agreeing support for the firm.
