Sporting clothes and accessories retailer JJB Sports has denied claims that it has breached its banking covenants.

In a statement, JJB said: “JJB Sports reaffirms that, on the advice of its lawyers DLA Piper and accountants Deloitte and Touche, it is refuting claims that at its financial year-end there was a breach of a covenant relating to its£15 million banking facility with Bank of Scotland.”

It continued: “Barclays Bank had accepted that, in their view, there was no breach of covenant with regard to their£60 million facility.”

The statement was issued following comments in the auditors’ report in the sports retailer’s interim trading statement today, in which the auditor said: “The group is currently also claimed to be in breach of certain covenants relating to the£15 million facility (the group refutes this allegation on advice) and the Projections project further breaches of both facilities.”

At a press conference, JJB said that it had settled the dispute with Bank of Scotland and that the bank had no intention of recalling the loan, but had renegotiated the terms of its repayments.