JJB looks to raise extra capital

JJB has agreed a CVA to help it survive

Troubled retailer JJB Sports is considering selling new shares as one way of raising extra funds.

The Wigan-based retailer said it was reviewing a range of possible options "to provide additional capital".

These include the disposal of further non-core assets or a share offer priced at a discount to Friday's 30.75p close.

In May JJB reported an annual loss and slump in sales, but said then it had agreed a company voluntary arrangement (CVA) to help it to survive.

Loans

"The board confirms that as highlighted in its recently published annual report and accounts for 2009 it is reviewing a range of possible options to provide additional capital," it has now said in a statement.

"These include the disposal of further non-core assets, an extension in the maturity date of the company's working capital facility, beyond September 2010, and a possible equity capital raising by way of a placing and open offer."

The firm also said it expected to repay a loan to Barclays ahead of its payment date of 31 August.

JJB has already sold off its gym business to former owner Dave Whelan to raise funds.

Its main creditors - as well as Barclays - include HBOS and Kaupthing banks.