JJB on brink of administrationMonday, 24 September 2012
The fashion and sporting retailer was founded in 1971 and floated on the London Stock Exchange in 1994.
KPMG are expected to be appointed to handle the formal administration process once terms of the business' sale have been agreed with a potential buyer. Until then, JJB said all of its outlets would remain open for business as usual.
JJB Sports announced at the end of August that it was seeking a buyer to rescue the firm. Although the Wigan-based retailer received a number of offers, none of its suitors was interested in buying the company as a whole, but instead made offers for parts of its business, assets and brands.
The failure of the sale process was widely anticipated, and JJB's shares have been valued at less than a penny each since the decision to seek a suitor was first announced.
A likely buyer for much of the remaining business is JJB's far more successful rival Sports Direct, although further expansion by the competitor firm may need approval from the competition authorities.
By effecting the sale through a "pre-pack" - or fully pre-arranged - administration, JJB will be able to write off any of its debts that the buyer is unwilling to assume, and that cannot be repaid from the sale proceeds.