Administrators appointed to JJB Sports 

Administrators from KPMG were today appointed to the three companies which make up JJB Sports, the sports retailer.  Brian Green, David Costley-Wood and Richard Fleming were appointed joint administrators to JJB Group plc; Brian Green, David Costley-Wood and Blair Nimmo were appointed to Blane Leisure Ltd and Brian Green and David Costley-Wood were appointed to SSL Retail Ltd. 

Following their appointment, the administrators completed an agreement to sell part of the business to Sports Direct International.   Sports Direct has acquired 20 of JJB’s stores, all brands and domain names and all trademarks (excluding JJB), securing around 550 jobs in the UK (including the staff at the company’s warehouse).  Unfortunately the remaining 133 stores will be closed today, resulting in approximately 2,200 redundancies. A total of 167 employees have been retained to assist the administrators.

Richard Fleming, UK Head of Restructuring at KPMG, commented: “Successive attempts to restructure the business, both financially and operationally, have not been enough to prevent the company falling into administration.  Unfortunately a buyer could only be found for 20 stores on a going concern basis.  All staff made redundant as a result of store closures have had their arrears of wages and holiday entitlements paid in full.  Our team of employment specialists will be supporting staff on completing redundancy forms and putting them in touch with job seeker services.  We will now be reviewing what options are available for the remainder of the business, such as selling leasehold interests.”

David McCorquodale, corporate finance partner who led the sales process, added: “In spite of the severity of financial distress suffered by the business, we spoke with over 100 parties in the first few days of our appointment; with 8 trade and private equity players tabling first round bids.  Unfortunately the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties.  We hope to be able to sell the leasehold interests of some of the remaining stores, which may result in re-employment of some staff.”

The administrators have set up a 24 hour helpline for employees: 0845 3022538.

Information is also available on the website: www.kpmg.com/uk/jjb.

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For further information on the administration, please contact:

Sorrelle Cooper, PR Senior Manager, KPMG: 020 7694 8527                                   sorrelle.cooper@kpmg.co.uk

Zoe Sheppard, PR Manager, KPMG: 0117 905 4337 / zoe.sheppard@kpmg.co.uk

KPMG press office: 020 7694 8773

For further information on the sale to Sports Direct International, please contact:

Jonathon Brill/Alex Beagley/Georgia Mann, FTI Consulting: 020 7831 3113

Notes to editors:

About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 11,000 partners and staff.  The UK firm recorded a turnover of £1.7 billion in the year ended September 2011. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.