Ailing JJB Sports, which has a store at Phoenix Retail Park, Corby, is to appoint administrators after calling time on its long-running battle to rescue the business.
The move, which is expected in the next few days, is likely to be accompanied by the sale of certain parts of the business under a pre-pack administration, JJB said.
The company requested the suspension of its shares today (Monday, September 24) and said it was clear that any offer for the company would not realise any value for shareholders.
JJB said it would continue to trade through all its retail outlets pending completion of the sale and administration process.
Newcastle United owner Mike Ashley’s Sports Direct business is seen as favourite to pick up a large chunk of the business, although the number of stores will depend on the stance of the competition watchdog.
As many as half of its 180 stores are expected to close in the sale process, threatening a large number of the 4,000 jobs at the firm.
JJB said it expected that KPMG would be appointed as administrators.
A spokesman for the company said: “The board has determined that any sale of the trade, assets and brands will be effected through an administration process.
“Therefore it is expected that the process to commence the appointment of administrators of the company and certain of its subsidiaries will begin today although the actual appointments are only likely to take effect just before th
The group has been hit hard by the squeeze on consumer spending triggered by the financial crisis and by the stellar performance of rivals Sports Direct and JD Sports.