JD Sports Fashion loses interest on JJB Sports

JD Sports Fashion has abandoned interest in a takeover of JJB Sports after claiming its ailing rival had snubbed its requests for information.With JJB working on its own survival plan, JD said it had not received a response from JJB that would

have helped it proceed with its approach.

According to associated Press, JD, whose interest in JJB was revealed in February, said: "Despite requests made with a view to enabling it to put forward alternative proposals for the future of the JJB business, since the beginning of February JD Sports Fashion has received no further information whatsoever from JJB Sports."

JB last month warned it could go bust unless landlords agree to cut rents on 95 stores it has earmarked for possible closure. The announcement came soon after the two companies revealed they were in offer discussions.

JD’s unique offering, whose emphasis is more on sports than fashion, has helped the company prosper in recent years, in contrast to the pile ‘em high approach of JJB, which has failed to win over consumer.

Under its latest restructuring plan, Wigan-based JJB is offering landlords a sweetener of up to £7.5 million if they accept a deal that could see 89 stores close as it battles to stave off administration.

A deal with JD would have created one of the biggest high street chains in Britain.JD Sports is understood to have been frustrated by JJB's decision to plough on with its Company Voluntary Arrangement (CVA) with landlords - its second CVA in two years.

But JJB said it believed JD's takeover proposal was "highly conditional and lacking sufficient certainty to be deliverable".Mike McTighe, chairman of JJB, added: "We welcome today's clarification from JD Sports. JJB's restructuring continues as planned with the whole management team focused on and committed to delivering a stable standalone future for JJB and its employees. The board remains confident that with the support of our stakeholders we can achieve a successful turnaround of the business."

JJB, which operates nearly 250 stores and employs 6,100 staff, was thrown into a battle for survival after seeing sales plunge despite a major promotional drive. JJB's landlords will receive between 25p and 29p in the pound if the retailer's proposed CVA goes through when voted on later this month. They would receive just 1p if JJB was allowed to go bust.