JJB Sports stores to be closed (From Daily Echo)

JJB Sports' Southampton store closes

4:20pm Monday 1st October 2012 in News

Around 2,200 staff at JJB Sports were made redundant today after administrators closed 133 stores and agreed to sell 20 remaining outlets to Mike Ashley's Sports Direct International.

The firm's Southampton store, which is located on the WestQuay Retail Park in the heart of the city is believed to be one of the shops that will be closed.

As a result, 21 jobs at the store will be lost.

Meanwhile the Winchester store has been sold, saving nine jobs in the process.

The Sports World parent bought the stores, the brand and its website for £23.8 million in a deal that will protect 550 jobs in the UK, including its warehouse.

But the agreement is a worse-than-expected outcome for JJB staff as Sports Direct was reportedly hoping to safeguard up to 1,500 jobs and buy up to 60 stores.

However, David McCorquodale, corporate finance partner at KPMG, who led the sales process, said the level of cash and further operational restructuring required to rescue a more substantial part of the business was too much risk for most interested parties.