JJB Sports, once the U.K.'s largest sports retailer, collapsed into administration after weeks of negotiations failed to secure the future of 133 shops and 2,200 staff. Administrators from KPMG reached an agreement to sell 20 JJB stores to Sports Direct for £24 million ($39mm).
The sale is expected to save 550 jobs in the UK, including warehouse staff.
remaining 133 JJB stores shut on Monday with 2,200 employees out of
work. Some 167 employees have been retained to help the administrators
but will lose their jobs once their work is done.
The company had been seeking to sell the business but
Direct, which operates Sports World, has also acquired all of JJB's
stock and the Slazenger Golf brand licences, as well as the company's
headquarters in Wigan, a freehold property.
The sale proceeds
will be used to repay some of JJB's £45 million ($76mm) in debt to its
lender, Lloyds Banking Group and other secured creditors, Dick's
Sporting Goods and Adidas. Shareholders aren't getting any payback and
vendors and other unsecured creditors are also expected to get minor
returns for their unpaid bills.