JJB given £445,000 fine by Financial Services Authority

Sportswear retailer JJB Sports has been hit with a £445,000 fine after a City watchdog investigation into the company's compliance dating back more than two years, it emerged yesterday.

JJB would give few details on the probe until the Financial Services Authority publishes its final notice, but said it related to "historic compliance with the disclosure and transparency rules in the lead up to the release of the group's interim results on 26 September 2008".

Those results shocked the market when JJB - then under the leadership of former chief executive Chris Ronnie - reported far worse than expected losses of 9.7 million and axed its shareholder dividend payout.

Shares slumped 60 per cent on the day of its results blow, when its auditors also raised "significant doubt" about its ability to continue as a going concern.

Just two months earlier, JJB had posted figures showing a marked improvement in sales towards the end of the first half.

News of the losses came at the start of a lengthy period of woes for Wigan-based JJB that saw the group come close to collapse.

The group stressed yesterday that the FSA probe was into compliance at the firm before the company's restructuring.

It has a completely new management team in place and has since secured a rescue deal with landlords in 2009.

JJB said: "No further investigations into the company by the FSA are ongoing."

The firm has been the subject of various investigations in the past two years.

Two weeks ago, the Serious Fraud Office ended its investigation into JJB and rival Sports Direct International over allegations of cartel activity without bringing charges.

But the SFO is still investigating individuals in relation to the alleged case. The Office of Fair Trading is also investigating alleged anti-competitive conduct.