Equity firm interested in JJB, but sports retailer isn’t playing ball

Better Capital, the private equity firm headed by venture capitalist Jon Moulton, has held talks with JJB Sports and its bank about buying the troubled retailer’s debt, but sources insisted yesterday that no deal was imminent.

JJB had net debt of £17.7 million as of 18 July and one source said turnaround specialist Better, which has bought double-glazing firm Everest and fashion brand Jaeger in recent months, had approached the sports chain and Lloyds with a view to taking on the borrowings. However, the source added: “The talks never came to anything and Better don’t anticipate anything coming up now. This is just one of many conversations they have about lots of different assets, but the board of JJB haven’t bitten and there’s nothing happening.”

JJB declined to comment. The retailer, which has some 180 stores, saw its like-for-like sales fall 8.7 per cent in the 24 weeks to 15 July. It blamed the decline on bad weather and poor demand for replica football kits during the Euro 2012 tournament. The chain secured a lifeline three months ago when it landed £20m from US retailer Dick’s Sporting Goods and a further £10m from existing shareholders, such as the Bill and Melinda Gates Foundation.

It earmarked £20m for converting 60 of its most important stores into a new format, but said last month that it would need extra funds for the programme sooner than expected.

Earlier this week, fund manager Investec – JJB’s largest shareholder – was also said to have approached the company about buying its debts.