• Massive debts and competition from Sports Direct pushes firm under

By Rupert Steiner

PUBLISHED: 18:38 EST, 1 October 2012 | UPDATED: 18:39 EST, 1 October 2012


About 2,200 shop workers were laid off yesterday after JJB Sports became the latest high street retailer to collapse.

The sports chain has been lurching from crisis to crisis over the past year, struggling with massive debts and low profits, as well as competition from rival Sports Direct and online retailers.

It was forced to call in administrators who closed 133 stores after failing to find a buyer.

One crisis too far: Around 2,200 shop workers were laid off after JJB Sports became the latest high street retailer to collapse

One crisis too far: Around 2,200 shop workers were laid off after JJB Sports became the latest high street retailer to collapse

Sports Direct had been in talks to rescue the majority of the business, but accountants KMPG said it would buy only 20 stores, securing 550 jobs, and the website.

Richard Fleming, of KPMG, said: 'The level of cash ... required to rescue a more substantial part of the business was too much risk for most interested parties.'

Large high street chains have been bearing the brunt of the downturn, hurt by high rent bills, the rising cost of stock, and less cash coming through the tills as shoppers rein in their spending.

Rival: Newcastle owner Mike Ashley's Sports Direct had been in talks to rescue the majority of JJB, but later said it would only buy 20 stores and the website

Rival: Newcastle owner Mike Ashley's Sports Direct had been in talks to rescue the majority of JJB, but later said it would only buy 20 stores and the website

In July JJB's chief executive Keith Jones stepped down after the company issued a string of warnings over profits and debts of 36million.

It said it had approached its suppliers and partners for more cash, months after securing a deal aimed at shoring up the business.

US retailer Dick's Sporting Goods had thrown JJB a 20million lifeline which was supposed to last it until the end of the year.

But in August JJB was forced to put itself up for sale in a desperate bid to avoid collapsing into administration.

Kate Calvert, an analyst at investment bank Seymour Pierce, said at the time: 'It's a business that's been shrinking for the last couple of years.

'They haven't been able to find their niche in the market place and be able to take on the likes of Sports Direct and online supermarkets.'

Mr Fleming said: 'All staff made redundant as a result of store closures have had their arrears of wages and holiday entitlement paid in full.

'Our team of employment specialists will be supporting them and putting them in touch with job seekers' services.'