JJB Sports Enter Bankruptcy Protection Closes Most Stores, Layoffs 2200

British sporting goods retail chain that has entered bankruptcy protection

Business JJB sports announced on Monday that the bankruptcy manager would close down the vast majority of stores and remove about 2200 employees because of the fact that only 20 stores were looking for buyers.

The heavily burdened JJB sports said on Monday that KPMG, the trustee, has managed to sell 20 stores to the Newcastle union owner, Mike Ashley, which sells direct sales to retailers. The deal will bring 23 million 770 thousand pounds (38 million yuan) to the company and retain 550 jobs.

But the remaining 133 stores will be closed from Monday and 2200 employees will be dismissed.

JJB sports, which are threatened by declining sales, face fierce competition in sports direct selling. The latter is its biggest competitor and a very radical discount retailer.

JJB sports were also hit by economic recession.

The latest retail company that has failed.

Cox, a new outdoor goods company, has entered bankruptcy management in early 2012.

JJB sports said that the proceeds of the paction will be used to repay debts and shareholders will not get any return.

JJB sports stock worth 300 pence per share three years ago was only 0.4 pence per share before being stopped.

KPMG, the division's office, said it was evaluating other options for JJB's sports surplus business, including the sale of some of the remaining leased stores.

KPMG said it had contacted more than 100 interested entities in the first few days of its appointment, and eight traders and private equity companies will take part in the first round of bidding.