JD pulls plug on takeover of troubled rival JJB

JD SPORTS Fashion has abandoned interest in a takeover of JJB Sports after claiming its ailing rival had snubbed its requests for information.

With JJB working on its own survival plan, JD said it had not received a response from JJB that would have helped it proceed with its approach.

JD, whose interest in JJB was revealed last month, said: "Despite requests made with a view to enabling it to put forward alternative proposals for the future of the JJB business, since the beginning of February JD Sports Fashion has received no further information from JJB Sports."

Under its latest restructuring plan, Wigan-based JJB is offering landlords a sweetener of up to 7.5 million if they accept a deal that could see 89 stores close as it battles to stave off administration.

A deal with JD would have created one of the biggest high street chains in Britain.

JD Sports is understood to have been frustrated by JJB's decision to plough on with its company voluntary arrangement (CVA) with landlords - its second CVA in two years. But JJB said it believed JD's takeover proposal was "highly conditional and lacking sufficient certainty to be deliverable".

Mike McTighe, chairman of JJB, added: "We welcome today's clarification from JD Sports.

"JJB's restructuring continues as planned with the whole management team focused on and committed to delivering a stable standalone future for JJB and its employees," he said. "The board remains confident that, with the support of our stakeholders, we can achieve a successful turnaround of the business."

JJB, which operates nearly 250 stores and employs 6,100 staff, was thrown into a battle for survival after seeing sales plunge despite a major promotional drive.

JJB's landlords will receive between 25p and 29p in the pound if the retailer's proposed CVA is voted through later this month.

They would receive just 1p if JJB was allowed to go bust.

It needs the approval of 75 per cent of its unsecured creditors and 50 per cent of its shareholders for the CVA to be passed at meetings to be held on 22 March.