Embattled sports retailer JJB Sports has landed £30 million of additional funding having struck a deal with American retailer Dick’s Sporting Goods.
The retailer which has already been through two CVAs today confirmed an initial £20 million investment in new shares and convertible loan notes from Dick’s SG and the option for the US firm to invest a further £20 million in convertible loan notes at a later date.
Adidas Group has also agreed to bolster the firm’s financial strength still further with a two-stage loan of up to £15 million to assist in the group’s revamp of its store portfolio.
Bank of Scotland has agreed to extend its existing borrowing facilities until May of 2015.
Edward Stack, chairman and chief executive of Dick’s Sporting Goods, said he believes JJB is a “strong company”.
He added: “We look forward to providing the company with financial support at this crucial stage of its turnaround and to using our expertise in the US market to help guide its growth efforts.”
Keith Jones, chief executive of JJB Sports, said the deal will provide an opportunity to accelerate the turnaround of the business.
He added: “We are also extremely grateful to our key stakeholders for their continued support and the Bank of Scotland for the confidence they have demonstrated in the long-term future of our company.”