The retailer operates 180 sporting goods stores, but has been losing money since 2009. Liquidation seemed inevitable afterDick's Sporting Goods announced in mid-August that it was writing off its entire $32.4 million investment in JJB Sports, which it has made only months earlier.
Since launching a formal sale Aug. 30, JJB and its advisers have held discussions with a number of parties who have now submitted their final offers. Based on the final offers received and as previously foreshadowed in announcements made on Aug. 30 and Sept. 13, 2012, no value will be attributable to the company's ordinary shares.
Offers received since Aug. 30 include offers to acquire certain of or substantially all of the trade, assets and brands of the Group. However, the Board notes that it does not have and does not now expect to receive an offer for the shares of JJB. Accordingly, the Takeover Panel has confirmed that the company is now out of an offer period.
"The Board has determined that any sale of the trade, assets and brands will be effected through an administration process," the company announced Monday. "Therefore it is expected that the process to commence the appointment of administrators of the company and certain of its subsidiaries will begin today although the actual appointments are only likely to take effect just before the completion of any such sale. The Group will therefore continue to trade through all retail outlets outside of an administration pending completion of a sale process."
The company has proposed three partners with KPMG LLP be appointed as the administrators of the company and certain of its subsidiaries. The company suspended trading in its ordinary shares on the London Stock Exchange's AIM market Monday morning and said it hopes to announce a sale of the trade, assets and brands of the Group within the next few days. A further announcement will be made in due course.
In a separate release, JJB Sports announced that Mohamed Al Fayed, who sold Harrod’s department store in London to Qatar Holdings in 2010 for a reported $2.4 billion, increased his holdings of JJB Sports Sept. 21 from 12.7 million to 23 million shares, or 5.67 percent of the company. Al Fayed is a self-made Egyptian billionaire and anglophile who resides in the United Kingdom and retains holdings in luxury fashion, hospitality and a soccer club.
Related Previous post :