JJB Sports enters administration with 2,200 jobs lost
3 October 2012
The sports retailer has gone into administration, with 2,200 employees to be made redundant.
Sports Direct has acquired 20 of JJB’s stores, the brand and website, securing around 550 jobs in the UK, including staff at the company’s warehouse. The remaining 133 stores will be closed today, resulting in the job losses.
A total of 167 JJB Sports employees have been retained to assist the administrators.
Richard Fleming, UK Head of Restructuring at KPMG, comments: “Successive attempts to restructure the business, both financially and operationally, have not been enough to prevent the company falling into administration. Unfortunately a buyer could only be found for 20 stores on a going concern basis.
"All staff made redundant as a result of store closures have had their arrears of wages and holiday entitlements paid in full. Our team of employment specialists will be supporting staff on completing redundancy forms and putting them in touch with job seeker services. We will now be reviewing what options are available for the remainder of the business, such as selling leasehold interests.”
JJB Sports was once the biggest UK sports retailer, valued at £1bn, but fell into trouble after chief executive and shareholder Chris Ronnie was the subject of a Serious Fraud Office investigation.
JJB was put up for sale at the end of August after failing to secure funding and money spent on transforming 60 key stores failed to make a difference to poor sales.
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