Restructuring plan looming for JJB Sports

Struggling retailer JJB Sports is finalising a restructuring plan to help secure its future within two weeks.

The firm warned last month it would need fresh funds to pay for its store refurbishment programme sooner than it had expected as it battles dire trading figures and rising debts, although it did not set a date.

It is thought that the management has now been given a deadline of 5 September to submit the proposals for a financial restructuring to put it on firmer footing, which is sooner than had been expected.

All of JJB’s major shareholders are thought to be participating in the talks but it is unclear if the timeframe has been imposed by Lloyds Banking Group, the retailer’s main lender, or by the group’s management.

JJB, which declined to comment on yesterday’s report, has been involved in a long-running survival battle after a slump in sales and a string of profit warnings. It is struggling to compete with rivals such as Sports Direct.

It secured its most recent lifeline just three months ago when it landed £20 million from US retailer Dick’s Sporting Goods.