JJB lines up refinancing as new CFO joins

SHORT-TERM REFINANCING has been achieved at embattled sports retailer JJB.

The deal will see major stakeholders, including the Bill and Melinda Gates Foundation Trust, support a capital raising proposal of at least £31.5m.

Lender Bank of Scotland will waive its January 2011 covenant tests in JJB’s £25m revolving facility on the basis of the capital raising.

A board reshuffle has also taken place. Dave Williams will succeed Lawrence Coppock as CFO, while Mike McTighe takes over from John Clare as chairman.

Net debt stands at £21.4m at 19 December. The directors believe the company has sufficient cash headroom pending receipt of the capital raising proceeds, but this will be dependent on trading performance over Christmas and the New year.

Like-for-like sales at JJB between 8 November and 19 December have fallen 15.7% compared with the same period last year, hit by the poor weather conditions and store stock availability issues.

It share price climbed more than 20% this morning to £5.22 following the news.


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