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Sports Direct buys out JJB Sports
Tuesday October 2nd 2012
JJB Sports is to vanish from the high street after administrators closed 133 stores across the country, with the firm agreeing to sell the 20 remaining outlets to Sports Direct International.
The Sports World parent, owned by Mike Ashley, bought the brand and its website in a deal worth £23.8 million, leaving 2,200 JJB employees out of work.
Although the agreement will protect 550 jobs in the UK, including its warehouse, it is a worse-than-expected outcome for JJB staff as Sports Direct was reportedly hoping to protect as many as 1,500 jobs and buy up to 60 stores.
But the level of cash and further operational restructuring required to safeguard a larger proportion of the business offered too much risk for most interested parties, according to David McCorquodale, corporate finance partner at KPMG, who led the sales process.
Sports Direct also acquired all of JJB's stock and the Slazenger Golf brand in the deal which will see it convert all 20 stores to its own brand name.
Copyright Press Association 2012
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