JJB Sports has raised £31.5m in a share sale that represents an essential bid towards survival.
The retailer reported this morning that the cash was raised in a firm placing and a placing and open offer of 630m shares at 5p each.
Of the 315m shares in the open offer, only 3.7% acceptances were received, with 96.3% of the shares allocated to shareholders which backed JJB’s firm placing, including its two largest investors Harris Associates and Crystal Amber.
JJB has said it requires a larger capital raising, in addition to the £31.5m, along with creditor and investor support for a second company voluntary arrangement (CVA) in as many years, if it is to avoid going into administration
It proposes to close up to 45 underperforming stores over the next 12 months. It also wants a review on the remaining stores with an option to close up to 50 further underperforming stores over the next 24 months.
Shares in JJB, which have lost two-thirds of their value over the past year, closed on Friday at 3.81p.
helen.roxburgh@estatesgazette.com
To access all EGi news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
