Troubled retailer JJB Sports has confirmed that it is in preliminary talks to be bought out by High Street sports retailer JD Sports.
The 250-store strong JJB retail chain has recently been fined £455,000 by the FSA for failing to reveal the cost of two acquisitions (the Original Shoe Company and Qube), but has long been on the receiving end of controversy and narrowly avoided going into administration in 2009.
Revenue from ongoing retail operations in the 53 weeks to January 31st 2010 fell by £105.5m compared to the previous accounting period, including a -27.3 per cent like-for-like decrease for operating units that had been trading over the period.
The firm said in a statement: "Further to the press speculation this evening, JJB Sports plc confirms that it is in initial discussions with JD Sports Fashion plc in relation to a potential offer.
The highly preliminary nature of these discussions is such that there can be no certainty that any offer will be made or as to the terms of any offer."