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| JJB Sports announces investment package with US firm | JJB Sports announces investment package with US firm |
| (40 minutes later) | |
| JJB Sports has announced a £30m investment package, which will see US retailer Dick's Sporting Goods take a stake in the firm. | |
| The initial £20m investment from Dick's will purchase ordinary shares and convertible loan notes. On conversion of the notes, Dick's will become a controlling shareholder. | |
| Existing shareholders will invest £10m. | |
| It came as Wigan-based JJB said pre-tax losses for the year to 29 January 2012 narrowed to £101.1m from £181.4m. | It came as Wigan-based JJB said pre-tax losses for the year to 29 January 2012 narrowed to £101.1m from £181.4m. |
| Revenues fell 21.7% to £284.2m. | Revenues fell 21.7% to £284.2m. |
| The UK retailer is in the process of a restructuring programme that includes closing 43 of its stores. | The UK retailer is in the process of a restructuring programme that includes closing 43 of its stores. |
| JJB said the year had been "extremely challenging" and said that sales had continued to fall since the end of its financial year. | JJB said the year had been "extremely challenging" and said that sales had continued to fall since the end of its financial year. |
| Like-for-like sales for the nine weeks to 1 April 2012 were down 5.7%, while the company's net debt had risen to £20.6m from £11.3m at the end of January. | Like-for-like sales for the nine weeks to 1 April 2012 were down 5.7%, while the company's net debt had risen to £20.6m from £11.3m at the end of January. |
| Store refits | |
| JJB said that the investment from Dick's gave it the opportunity to draw on the US firm's experience in the sports retail market. | |
| It said at least one representative from Dick's was expected to join the board. | |
| The other £10m investment comes from four existing shareholders, including the Bill and Melinda Gates Foundation. | |
| Dick's also has the right to buy a further £20m of convertible loan notes next year. | |
| As part of the refinancing package, JJB said that supplier Adidas would provide security for a two-stage loan of up to £15m to fund store refits and that Bank of Scotland would extend existing loan facilities until May 2015. | |
| JJB said it hopes to accelerate its store refit programme in time for this summer's European football championships and the London Olympics. | |
| "We believe this investment package and strategic alliance with Dick's will provide a real opportunity to accelerate JJB's turnaround," said JJB chief executive Keith Jones. | |
| "We have always said that the turnaround of JJB was never going to be easy or quick, and the current retail environment has made our work even more difficult." | |
| On Wednesday, former JJB boss Christopher Ronnie was charged with seven offences relating to a £1m fraud by the Serious Fraud Office (SFO). | |
| JJB said the SFO had confirmed in 2010 that an investigation into JJB had been completed, but that its investigation into individuals continued. It said it had co-operated fully with the SFO in relation to its investigation. |