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JJB Sports in Southend will close making 12 staff redundant
2,200 staff at JJB Sports were made redundant today after administrator KPMG closed 133 stores and sold the remaining 20 to rival Sports Direct International.
Southend's store is one of the casualties with 12 staff set to lose their jobs.
Administrators KPMG were today appointed to the three companies which make up JJB Sports.
Following their appointment, the administrators completed an agreement to sell part of the business to Sports Direct International.
Sports Direct has acquired 20 of JJB’s stores, the brand and website, securing around 550 jobs in the UK (including the staff at the company’s warehouse).
Unfortunately the remaining 133 stores will be closed today, resulting in approximately 2,200 redundancies.
A total of 167 employees have been retained to assist the administrators.
Richard Fleming, UK Head of Restructuring at KPMG, commented: “Successive attempts to restructure the business, both financially and operationally, have not been enough to prevent the company falling into administration.
"Unfortunately a buyer could only be found for 20 stores on a going concern basis. All staff made redundant as a result of store closures have had their arrears of wages and holiday entitlements paid in full. Our team of employment specialists will be supporting staff on completing redundancy forms and putting them in touch with job seeker services.
"We will now be reviewing what options are available for the remainder of the business, such as selling leasehold interests.”
David McCorquodale, corporate finance partner who led the sales process, added: “In spite of the severity of financial distress suffered by the business, we spoke with over 100 parties in the first few days of our appointment; with 8 trade and private equity players tabling first round bids.
"Unfortunately 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. We hope to be able to sell the leasehold interests of some of the remaining stores, which may result in re-employment of some staff.”
The administrators have set up a 24 hour helpline for employees: 0845 3022538.
Information is also available on the website: www.kpmg.com/uk/jjb
- Do you work for JJB? Contact the Echo newsroom on 01702 321139.