United Kingdom

Details

  • Type: Press release
  • Date: 01/10/2012

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.

 

 

- ENDS –

 

 

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:

 

Transferred stores

Store name

No of employees

Airdrie

12

Antrim

10

Brighton

21

Chorley

7

Cumbernauld

11

Dorchester

9

Dover

12

Elgin

12

Glasgow Silverburn

25

Leamington Spa

18

Leeds

11

Lisburn

27

Liverpool

34

Llandudno

17

Londonderry

28

Oldbury

22

Rhyl

11

Rochdale

16

West Bromwich

18

Winchester

9

 

Total

330

 

 

 

Closed stores

Store name

No of employees

Redundant employees

Aberdeen

12

11

Aberdeen

26

25

Accrington

15

14

Aylesbury

16

15

Ayr

16

15

Ballymena

24

23

Banbury

6

5

Bangor NI

8

7

Basingstoke

20

19

Bath

28

27

Belfast

15

14

Belfast

18

17

Belfast

12

11

Birmingham

20

19

Blackpool

14

13

Bolton

16

15

Bootle

9

8

Boston

9

8

Bournemouth

18

17

Bournemouth

14

13

Bristol

10

9

Bristol

20

19

Burnley

15

14

Camberley

5

4

Canterbury

8

7

Cardiff

26

25

Carlisle

13

12

Carmarthen

8

7

Chelmsford

15

14

Cheltenham

16

15

Chester

21

20

Chesterfield

16

15

Clydebank

15

14

Colchester

23

22

Coleraine

16

15

Corby

17

16

Coventry

19

18

Coventry

20

19

Craigavon

27

26

Crawley

26

25

Crewe

13

12

Croydon

23

22

Cwmbran

8

7

Darlington

17

16

Dewsbury

11

10

Dudley

18

17

Dumfries

18

17

Dunfermline

15

14

Durham

11

10

East Kilbride

23

22

Edinburgh

16

15

Edinburgh

17

16

Enfield

33

32

Exeter

19

18

Falkirk

14

13

Falkirk

7

6

Fareham

18

17

Gateshead

12

11

Gillingham

9

8

Glasgow

13

12

Glasgow

21

20

Glasgow

13

12

Glenrothes

10

9

Great Yarmouth

8

7

Greenock

14

13

Grimsby

16

15

Guildford

17

16

Hamilton

14

13

Hanley

26

25

Hartlepool

17

16

Haverfordwest

5

4

Hayes

20

19

Hereford

9

8

Ipswich

19

18

Irvine

9

8

Keighley

13

12

Kilmarnock

12

11

Kings Lynn

20

19

Kirkcaldy

25

24

Kirkcaldy

11

10

Lancaster

16

15

Leeds

16

15

Leeds

15

14

Leicester

21

20

Leicester

30

29

Lincoln

17

16

Liverpool

20

19

Livingston

16

15

Londonderry

16

15

Maidstone

24

23

Manchester

23

22

Manchester

43

42

Mansfield

10

9

Newry

14

13

Newtownards

14

13

Northampton

29

28

Norwich

27

26

Nottingham

18

17

Nuneaton

14

13

Oxford

14

13

Perth

16

15

Peterborough

13

12

Portsmouth

11

10

Prescot

17

16

Preston

16

15

Preston

12

11

Renfrew

11

10

Rugby

19

18

Scarborough

10

9

Slough

27

26

Solihull

23

22

South Shields

11

10

Southampton

22

21

Southend

13

12

Stafford

16

15

Stevenage

18

17

Stirling

16

15

Stockport

16

15

Stockton

19

18

Sunderland

11

10

Swindon

22

21

Tamworth

16

15

Taunton

9

8

Torquay

11

10

Truro

16

15

Wakefield

24

23

Walsall

16

15

Waterlooville

13

12

Wigan

28

27

Wishaw

13

12

Woking

11

10

Worcester

19

18

Workington

15

14

Total

2193

2060

 

 

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.

 

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