JJB founder buys fitness division for £83 million
David Whelan, the founder of JJB sports, has today confirmed the acquisition of the retailer's fitness clubs for £83.4 million. This is the latest in a number of steps being taken to attempt to secure the long-term future of the sport's retail giant which has hit a difficult patch of late. A number of restructuring measures have already been taken whereby a number of senior staff has left the group, landlords have been advised of short-term issues regarding rents, rental agreements are set to be amended and the company looks to reduce its alleged £60 million debt.
Unfortunately, at the same time as announcing the sale of the fitness division the company also revealed that like-for-like sales were down 18.5% for the 10 weeks to 23 March. This will no doubt be a mixture of economic uncertainty and uncertainty specifically associated with the short-term future of the group. It would appear that the £83 million for the fitness division should be enough to stave off any serious financial problems in the short to medium term like any retailer in the UK, the company really needs an improvement in the market.
A number of directors have been appointed with extensive experience in rescuing struggling companies, which has injected a degree of confidence in the short to medium term.
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