JJB raised £100m to repay debts in October last year JJB Sports has warned it is likely to breach conditions of loan agreements with its bank due to worse-than-expected sales in recent weeks.
The troubled retailer said trading conditions remained “extremely challenging” and would likely deteriorate due to the bad weather.
It said it was in “constructive discussions” with the Bank of Scotland over future financing of the business.
JJB has struggled with weak sales during the downturn.
It was forced to raise £100m in a rights issue in October last year.
“In light of continued difficult trading conditions, the company believes that it is likely that it will breach certain financial covenants in the £25m revolving facility provided by Bank of Scotland when they are next tested at the end of January 2011,” JJB said.
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