The sportswear retailer, JD Sports extended timely help to the rival JJB Sports in wiping out debts by taking 10% stake.

JD Sports had to spend £8.1m on buying 25 million shares of JJB, according to JD’s statement over the deal. JJB later announced that it was negotiating with an unnamed bidder for the sale of its Fitness Club business with an offer for chain of 50 gyms.

The unknown bidder is understood to be the chairman of Wigan Athletic Club, Dave Whalen, JJB’s original founder in 1977.

Whalen had sold his 29% stake in the group last year to the chief executive Chris Ronnie. He is now interested in buying 50 gyms for £100m which would pay off JJB’s debts.

According to Philip Dorgan of Panmure Gordon, JJB’s deal with Whalen would relieve company of its debt and help tide over financial crisis. The company owed £20m bridge loan to Kaupthing which it is supposed to pay in November. The loan was taken for purchase of Christmas stock, but the likely downturn in sales during Christmas season would put the group under extreme pressure.

However, more optimistic Dorgan drew parallel with Next in 1990s when it was rescued by the grand sale of Grattan, and added that present JJB deputy chairman was at that time chief executive of Next.

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