What’s next for JJB Sports: new owner, different name

Sports Direct has been forced to return JJB stores to administrators as the former was unable to complete deals on 14 out of 20 stores, after acquiring them in October. Meanwhile, Dave Whelan owned DW Sports has taken on several former JJB

Sports stores across the UK.

According to ‘Property week’, Mike Ashley's Sports Direct has returned most of the JJB stores it acquired from KPMG last year to the administrators, and more could be set to go under sale.

New name and owner for JJB Sports

Meanwhile, Dave Whelan owned DW Sports has taken on several former JJB Sports stores across the UK. The founder of JJB has long been reported to be interested in taking on some of his former company’s most profitable outlets since it went into administration last year.

Dave Whelan, who is also chairman of Wigan Football Club, said: "It is disappointing to see JJB in such financial trouble. Having bought the health clubs and retail stores from them three and a half years ago it is our intention now to make the DW sports store in Bristol one of our top retail stores." It is noteworthy that DW Sports Fitness chain was set up in 2009 after Whelan bought 52 JJB fitness clubs and adjoining sports stores, reported ‘South West Business’.

Speaking to the ‘Evening Post’, DW Sports chief executive Winston Higham said: “The sites we will be reopening over the next few weeks will take us up to 70 retail outlets. We plan on continued growth in retail when we identify the sites that meet our specific requirements.” As pioneers, former JJB stores in Bristol, Cheltenham and Leicester are due to be reopened under the DW masthead in the next few weeks.

Higham added: “We have taken over a number of new sites for retail stores, however, we are not just looking at former JJB sites. There are a number of prime empty sites out there, we look at towns and cities we feel can support a specialist sports retail store,” he further explained.

As part of Sports Direct’s buyout deal of 20 outlets, 258 jobs were safeguarded at the HQ although there were 153 job losses. Three of the stores not taken on by Sports Direct - owned by Newcastle United owner Mike Ashley - have been leased by budget retailer B&M bargains.

While Sports Direct claimed the rights to the website and sportswear brands such as the Slazenger golf range in their pre-pack administration deal, it remains possible for a buyer to purchase some of the stores and trade under the JJB name.

According to the recently released study commissioned by Paul Turner-Mitchell and undertaken by corporate financial monitoring specialists Company Watch, when JJB Sports went into administration in September 2012, it did so leaving behind a 95 million pounds total debt. As a reference, the administration of retail peer Republic could also cost the taxpayer nearly 3 million pounds.