By Marcus Leach
JJB Sports have been placed into administration and as such around 2,200 staff are set to be made redundant.
The sports clothes and equipment retailer have managed to save around 550 jobs by selling pat of their business to Sports Direct, although 133 stores will be closed.
Sports Direct is buying 20 JJB stores, the brand and the website.
“In spite of the severity of financial distress suffered by the business, we spoke with over 100 parties in the first few days of our appointment; with 8 trade and private equity players tabling first round bids," David McCorquodale, corporate finance partner at KPMG, who led the sales process, said.
"Unfortunately the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties. We hope to be able to sell the leasehold interests of some of the remaining stores, which may result in re-employment of some staff.”
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