JJB Sports seek counsel after entering administration
25th September 2012
Sportswear chain JJB Sports has confirmed rumours that it will be bringing in administrators and are employing the services of a London-based private practice to assist them in going through the process.
Shares in the group were immediately suspended after the announcement was made and those holding corporate, finance, restructuring and other relevant solicitor jobs in the firm began to go about their business.
JJB Sports have been struggling since the financial crisis first broke, and has been the subject of several attempts to return it to prosperity. These efforts did not yield any lasting positive results, however, and led to them seeking a new buyer last month. This could not be achieved and the group is now facing having to make the majority of its 4,000 strong workforce redundant.
This latest development marks another unwanted milestone in what has been a dramatic fall from profitability, with the company’s pre-recession shares selling at around £10 each in 2008.