Struggling retailer JJB Sports is holding onto the support of key suppliers despite its difficulties.

There was speculation earlier this week that top brand Nike was considering its terms of supply to the retailer but the brand dismissed the gossip.

A Nike spokesman said: “JJB is an important customer for Nike and we have a healthy working relationship. We have ongoing discussions with them on various business matters and we will continue to work positively with them through their current trading situation. Nike shipments are not on hold to JJB Sports.”

JJB revealed last week that it was likely to breach its banking covenants when they are tested in January, in light of continued tough trading conditions, which will have been exacerbated by the snow.

The retailer said it was having “constructive discussions” with lender Bank of Scotland, which remains supportive.