JD Sports muscles in on rival
SPORTS-fashion retailer JD Sports Fashion is eyeing a possible takeover of its struggling rival JJB Sports.
The £196million JD, whose share price has more than doubled this year, could make its move in the next few months despite the prospect of competition hurdles and opposition from leisure tycoon, Mike Ashley, who holds stakes in both companies.
JD’s executive chairman, Peter Cowgill, has said the 400-plus store group would consider “all opportunities”.
The company was unavailable for comment yesterday.
JJB, with a market value of £71million, recently restructured, reaching an agreement with its landlords for more lenient payment terms on its 250 remaining stores. It offloaded the leases on 140 under performing stores.
Although the deal has allayed concerns over its future in the short term, JJB is understood to be struggling to secure enough stock from suppliers.
Ashley, who owns Sports Direct and Newcastle United, could use his sizeable stake in JJB to vote against a takeover by JD due to concerns over possible price-fixing and a lessening of competition.
Competition watchdogs might also block a deal combining such a large proportion of the UK’s sports leisure retail space.