16:53 02 October 2012
The sports retailer JJB has gone into administration after four decades of providing consumers with sports gear, resulting in a loss of 2,200 jobs as 133 branches are being closed.
Although, 550 jobs were saved in a deal that saw rival sports retailer Sports Direct take on 20 of the JJB stores. The main owner of Sports Direct, Mike Ashley – who also owns Newcastle United Football Club – bought the stores along with the website.
It is believed that Mr. Ashley will rebrand JJB as Sports Direct, and as reported by The Independent, it was hoped he would have been accountable for saving up to 1,500 jobs, but the final deal did not see Mr. Ashley buying 60 JJB stores.
Richard Fleming, from the administrators KPMG, told the BBC: “Successive attempts to restructure the business, both financially and operationally, have not been enough to prevent the company falling into administration.”
It is understood the sale of JJB was issued in August with shares being suspended in September.
The chain of events follows a £30million investment three months previously, which included funds coming from American group Dick's Sporting Goods, in order to help the chain battle against economic downturn.
Other companies to recently fall in to administration includes computer game retailers Game and also fashion group Peacocks. The unstable financial market has even affected long-standing company Clinton Cards, who also suffered administration.
The current owner of Wigan Football Club, Dave Whelan, set up JJB Sports and had much success before eventually selling the company in 2007.
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