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.”