RUGBY’S JJB Sports is one of dozens across the country to close after collapsing into administration after weeks of negotiations.
The sports shop in Junction One Retail Park in Leicester Road was due to close yesterday (Monday) after administrators were called in.
It is thought that around 19 jobs have been lost as a result.
The company has been trying to sell its shops but only 20 were sold to rival Sports Direct - saving 550 jobs.
The Rugby shop was not one to be sold though however and is one of the 133 remaining JJB stores to close, leaving around 2.200 people out of work.
A total of 167 employees have been kept on to assist the administrators.
Richard Fleming, UK Head of Restructuring at administrators KPMG, said: “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