JJB backing from Gates and other shareholders

EMBATTLED retailer JJB Sports has secured further backing from major shareholders and its lender, Bank of Scotland, as it fights to stave off administration.

The loss-making firm said yesterday that its four biggest investors, including the Bill and Melinda Gates Foundation, had agreed to provide 65 million, while Bank of Scotland is prepared to extend 25m in working capital.

The latest fundraising comes after shareholders stumped up 31.5m last month.

However, in both cases the funds are conditional on landlords accepting a company voluntary arrangement (CVA) next week. JJB is seeking to close up to 89 unprofitable stores over the next two years and alter rental payments.

The firm yesterday unveiled a turnaround plan that involves cutting costs and increasing sales through investing in staff training, upgrading some of its 160 viable stores and improving its ranges. But it also revealed a 13.5 per cent like-for-like sales decline between 24 January and 13 March - figures it said were in line with internal expectations.

But Charles Stanley analyst Peter Smedley is not convinced the plan will be sufficient to save JJB. "Current trading attests to the fact that the company remains in a highly perilous situation," he said.