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By
Reuters
Published
Mar 14, 2011
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JJB Sports eyes 65 mln stg capital raising

By
Reuters
Published
Mar 14, 2011

LONDON, March 13 (Reuters) - British sportswear retailer JJB Sports (JJB.L) said it expects to raise around 65 million pounds ($104 million) through a proposed equity capital raising to help it avoid going into administration.

"The company currently expects the quantum of the proposed equity capital raising to be around 65 million pounds and is in constructive discussions with its major shareholders in relation to their continued support," JJB said in a statement on Sunday.

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

JJB needs creditors, including landlords and shareholders, to back its second company voluntary arrangement (CVA) in as many years or it will likely go into administration, threatening 6,300 jobs.

Rival UK sportswear retailer JD Sports Fashion (JD.L) on Friday said it would not bid for JJB.

(Reporting by Rhys Jones; Editing by Louise Heavens) ($1=.6217 Pound)

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