Shares halted as JJB plans to call in administrators

SHAREHOLDERS in JJB Sports have seen their stakes wiped out after the retailer said it would call in administrators in the next few days, putting hundreds of jobs at risk.

The chain, which put itself up for sale last month after failing to secure the funds needed to overhaul its stores, has received a number of offers for parts of the business, but it does not expect to receive a bid for its shares or the company as a whole.

Trading in its shares was suspended on the Alternative Investment Market on Monday.

Its 180 stores will remain open for business, but up to half the outlets are expected to close in a pre-pack sale process once administrators David Costley-Wood, Richard Fleming and Brian Green of KPMG are appointed, threatening a large number of the 4,000 jobs at the firm.

Sports Direct International, founded by Newcastle United owner Mike Ashley, is seen as the favourite to buy the most profitable stores under the pre-pack administration.

Wigan Athletic owner David Whelan, who started JJB with a single store in 1971 before standing down from the board in 2007, might also pick up some outlets.

Whelan set up rival DW Sports in 2009, when he

acquired 52 fitness clubs and retail stores from JJB for £83.4m.