Troubled sportswear retailer JJB Sports has announced it is in discussions regarding the potential sale of one or more of its "non-core assets". It has been hit hard by the downturn in consumer spending and needs to raise cash. Last month JJB warned that it might breach its banking covenants. JJB, whose shares fell heavily last week, has been hit by the collapse of a creditor, Icelandic bank Kaupthing. JJB shares rose 17% in early trading, before slipping back to stand 8% up. Sell off A statement from JJB said: "The company is undergoing a review of the potential sale of one or more of its non-core assets and businesses to maximise shareholder value. Discussions are ongoing in this regard." However it would not reveal what may be sold. The company's assets include 61 Original Shoe Company stores and 24 Qube stores. JJB's shares fell 25% last Monday when news emerged that insurance company Coface had refused to cover its suppliers against the risk that the retailer cannot pay them. Last month, JJB reported a �9.7m six-month loss, citing the worst retail recession it had ever known. The company's auditor also cast "significant doubt" on JJB's ability to continue as a going concern. The problems were exacerbated over the summer as a result of all the home nations failing to qualify for the Euro 2008 football championships. The retailer is based in Wigan and has 400 stores. It was founded by Wigan football club chairman David Whelan, who sold his 29% stake last year for �190m.
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