US retailer Dick's funds £20m to JJB Sports
It seems that JJB Sports has been given a breather with the struggling sports and leisure wear retailer being funded with £20m by US retailer Dick's Sporting Goods. With this move, Dick’s would have significant control over the company.
The deal was struck after it was announced that JJB had reported full-year pre-tax losses of £101m on sales down 21.7% to £284m.
It has further been committed that Dick's, which has significant presence in selling guns and ammunition in addition to traditional sporting goods, would double the investment made to £40m in the come to come.
Moreover, there would be contribution of £10m by Wigan-based company's four biggest shareholders, Invesco, Harris Associates, Crystal Amber and the Bill and Melinda Gates Foundation, this year and another £5m next year.
"We believe that the investment package and strategic alliance with Dick's will provide a real opportunity to accelerate JJB's turnaround”, said JJB's Chief Executive, Keith Jones.
It was further claimed by Edward Stack, Chairman and Chief Executive of Dick’s that this deal is a strategic move made by the company which will give the desired results in the time to come.
It would be worth seeing how this deal would change the fortune of US retailer in the coming time.
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