JJB buys time by rejigging £20m debt

Struggling leisure retailer JJB Sports has seen sales plummet in the last few months, but it has bought itself a little breathing-space by rejigging some debts.

Like-for-like sales at the stores slumped 8.9% in the 19 weeks to 7 December, with the firm facing City scepticism that it can survive.

It made a near-£10 million loss in the six months to September and the shares have bombed. Today they shaded ¾p to 10¼p.

The good news is that the terms of a £20 million loan owed to Kaupthing have been altered. The money will still be repaid as planned on 14 December, but will be split between three banks - the other two being Barclays and HBOS - and this may help future negotiations with lenders.

A deal to sell its Fitness Clubs business to founder Dave Whelan looks to be off, for the moment at least. The LifeStyle arm, which is losing money, will probably be ditched altogether.

The statement today said only that the board is "considering its options" over LifeStyle. JJB chief executive Chris Ronnie held a brief conference call with analysts today, but journalists were not allowed to listen in.

Chairman Roger Lane-Smith said: "The outlook is challenging but I am confident the work we are doing will put JJB in the best possible shape."