JJB Sports has received a further extension on its standstill agreement with its banks as it examines restructuring options for the business.

Its standstill agreement with lenders has now been extended till March 24, with no additional charge, subject to the banks remaining satisfied with the disposal of its health clubs business.

JJB Sports founder Dave Whelan is expected to buy the 50 health clubs in a£70m deal which will help the sports retailer to pay back its debt.

As predicted in Retail Week, JJB is looking at options for the restructuring of the business which could include a Company Voluntary Arrangement (CVA).

In a statement, JJB said: “The company confirms that it is currently exploring a number of solvent restructuring options which would be undertaken with the support of its lenders. A further announcement will be made if and when appropriate."