JJB Sports In £65 Mn Cash Call

Struggling sportswear company JJB Sports is in talks with its major shareholders over a new £65 mn ($105 mn) capital raising.

The retailer says it will release more information about the fund-raising on Tuesday, along with details about its revised business plan. The news comes two days after a proposed takeover by JD Sports fell through.

With administration looming, JJB Sports is attempting to convince its shareholders, bankers and landlords to back a restructuring plan that would see the group drastically cut costs.

The shareholder talks are taking place just a month after JJB raised £31.5 mn from five of its largest shareholders. The retailer also conducted a £100 mn cash call at the end of 2009.

‘The company expects the quantum of the proposed equity capital raising to be around £65 mn and is in constructive discussions with its major shareholders in relation to their continued support,’ says JJB Sports in a statement to the stock exchange.

‘As announced on March 11, 2011, the company expects to provide further details of its revised business plan, anticipated funding requirements and proposed financing arrangements on or around March 15, 2011.’

Along with the restructuring, JJB Sports plans to move from the main list of the London Stock Exchange to the junior Alternative Investment Market.

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