The retailer has also appointed Lazard as joint financial adviser.
JJB reiterated that it would update on trading next Wednesday, December 10, as planned and said: “The company continues constructive discussions with its debt providers, Barclays, HBoS and Kaupthing, who remain supportive.”
Discussions are ongoing about the potential sale of JJB's fitness clubs and non-core assets such as the Qube chain. However, the retailer warned: “There can be no certainty that any transaction will occur or as to the terms of any such transaction.”
Singer Capital Markets analyst Matthew McEachran said: “We believe that their£95 million facilities are still fully drawn despite being into the peak Christmas period, with weak trading and credit insurance withdrawal on suppliers exacerbating the working capital dynamics.”