UK retailer JJB Sports has been given another week to find a buyer for its fitness-club unit after its lenders agreed to extend a deadline to repay borrowings for a third time.
Britain’s second-largest sporting-goods retailer said in a statement that the standstill agreement with Barclays, HBOS and Kaupthing Bank will now last until March 24, and added that the latest deadline extension came at no additional cost.
The agreement is subject to the lenders remaining "satisfied" with progress on the sale of the company’s gym unit, the proceeds of which will be used to reduce the company’s outstanding debt .
JJB Sports has been seeking a buyer for its fitness clubs since November to help repay its borrowings, which currently stand at around £60 million - almost double its market value.
The company hopes to collect between £30 million and £50 million for the unit, and said it is "exploring a number of solvent restructuring options which would be undertaken with the support of its lenders" .
Banks Extend JJB Debt Deadline Further
Tue, 17 Mar 2009
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