JJB Sports said it is looking to raise capital to fund the company’s turnaround plans.
In a statement to the Stock Exchange today in response to press speculation regarding a potential capital raising of at least £50m it said: ‘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 for the group.
'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. A further announcement will be made as and when appropriate.’
It also said that its lease assignment process in the disposal of the Fitness Clubs business, completed in March 2009.
It said: ‘The company confirms that 41 of the 53 leases have been assigned to Dave Whelan Sports Limited and approximately £17.6m of the total £33.9m deferred consideration has been released form the escrow account, and anticipates that it will repay the Barclays term loan ahead of its existing maturity date of 31 August 2009.’
