JJB Sports confirms offer approach
Sportswear retailer responds to City speculation
JJB Sports has confirmed that it has received an approach from a potential bidder for the group.
Responding to movements in its share price and subsequent press reports, the company said: “The Board of JJB Sports plc has noted recent press speculation and announces that it has received an approach which may or may not lead to an offer for the company.”
JJB gave no further information. The company saw strong trading in its shares on Thursday and Friday as the City responded to rumours of a takeover approach.
JJB issued a profits warning at the end of August, fuelling speculation that it could attract the attention of a private equity fund looking for bargains in the UK retail sector. The group has around 450 UK stores.
Any bid would need the support of chairman and major shareholder David Whelan, the company founder. Whelan attempted to take the company private last year, but failed to win support for a bid.
Along with venture capital players, the City has speculated that Mike Ashley, owner of the Sports Soccer chain and Lillywhites in London, or retail entrepreneur Tom Hunter, who sold his Sports Division chain to JJB six years ago, could be behind the approach.
