Ailing sportswear retailer JJB has seen its shares jump by 8% after reports of potential takeover bid interest from key competitor JD Sports.
Both JD Sports and JJB were particularly poor performers in the most recent Which? high street shops survey covering 77 retailers. JD Sports took the dubious accolade of being rated the worst for overall satisfaction by Which? members, while JJB fared only slightly better.
JJB under pressure
JJB’s financial pressure has come because it needs to raise cash to pay a £20m loan from collapsed Icelandic bank Kaupthing.
JD Sports bought a 10% stake in JJB, worth £8.1m, earlier this week. Another rival sportswear chain, Sportsworld, already owns a 22% interest in the firm.
If JD Sports was to take over JJB, the combined sportswear chain would have more than 800 stores, subject to approval from competition authorities.
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