JJB gains support on £65m fundraising

The Wigan-based retailer said its shareholders have approved its proposals to raise £65m through share placing.

JJB Sports made the announcement on the London Stock Exchange on Tuesday, stating "the board is pleased to announce that each of the resolutions proposed at the general meeting held today at 11am to approve the proposed firm placing and placing and open offer of, in aggregate, 162,500,000 new ordinary shares and other related matters was duly passed without amendment by the required majority on a vote conducted by way of a poll."

JJB said at the start of April 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 is using the funds for its revised business plan as the company looks to invest in maintenance of its remaining stores and follows the retailer's success in March at securing a company voluntary agreement to avoid going into administration.

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

JJB is set to close 43 of its stores over the next 12 months and put a further 46 under review.

The CVA allows JJB Sports to continue to trade from 150 unaffected stores with the payment of rent being paid monthly rather than quarterly.

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