JJB announces £65m fundraising proposals

The Wigan-based retailer has announced that its board of directors are proposing to raise £65m through share placing.

The capital raising will be supported by Harris Associates, Crystal Amber, Invesco Asset Management and Bill & Melinda Gates Foundation Trust and be fully underwritten by Numis.

JJB Sports said it will raise £60m net of expenses after the placing to "allow the company to reduce its reliance on the availability of supplier credit and provide the necessary funds for the implementation of the group's revised business plan".

The latest fundraising announcement follows JJB Sports' success in March at sealing a company voluntary agreement to avoid going into administration.

The company had reached agreement with its lender, Bank of Scotland, for the provision of a committed working capital facility of £25m through to 31 May 2014.

In a statement on the London Stock Exchange on Wednesday, Mike McTighe, JJB chairman, said: "After the approval of our CVA proposals by creditors and shareholders in March, I am delighted that we are today confirming the details of this capital raising with the support of our four largest shareholders.

"Together with the implementation of the CVA and continued availability of our banking facilities with BoS, this fundraising will mark the end of our financial restructuring process. Once complete, it will allow the company to press on with the next stage of implementing its revised business plan and allow management to focus solely on the turnaround of the group's retail business."

JJB is holding a general meeting at 11am on Tuesday 26 April.