JJB Sports founder considers buyout
Sports retailer confirms Whelan is looking at private move
March 25 2003
UK sports and leisure retailer JJB Sports has confirmed that founder and chairman Dave Whelan is considering a plan to take the company private.
A move by Whelan to buy out the 61 per cent of the company not already controlled by his family has been speculated on for some time. In January, Whelan confirmed he had had talks with a number of potential financial backers including NM Rothschild, but at that point had not spoken to the board.
JJB said in a statement that the non-executive directors have been informed that Whelan “is seriously considering making an offer for the share capital of JJB Sports not already owned by his family. In light of this, an independent committee of non-executive directors of the Board will be formed. Should an offer be forthcoming a further announcement will be made at that time.”
The retailer has found trading conditions in the sportswear market tough in recent times, and the business was also dealt a blow last October by the sudden death of chief executive, Duncan Sharpe, Whelan’s son-in-law. As with other UK retailers such as Harvey Nichols, there is a view that a period to recover and re-establish the business away from the harsh glare of the City would be beneficial.
The 39 per cent of the business controlled by Whelan includes his own stake, that of other family members, and the family trust.
