Galvan Research Review JJB Sports Round of Fundraising

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Galvan Research Review

(PRWeb UK) December 16, 2010

JJB has suffered at the hands of unseasonal bad weather, which the company thinks will only deteriorate further, and is now uncertain about a full year’s earnings forecast as there is still December to come - usually the discount retailer’s best month, so financial forecasting is tricky and not encouraging.

According to Galvan Research’s Ed Woolfitt, JJB is currently discussing its situation, and its options, with the RBS, while looking at alternative avenues of action including reconstruction and other sources of loan finance.
JJB has a GBP25 million overdraft with the northern financier, and now fears needing to breach the covenants on that loan come January. The company passed its mid-year covenant tests, and the bank had agreed not to test its gross earnings, thus according the debtor some elbow room as it manoeuvred its way back into the black.

A glimmer of optimism might have been sparked in the Wigan-based retailer’s boardroom when news came through that sales from its six refurbished outlets are up 11 percent on the company average, but Ed Woolfitt, head of trading at respected brokerage Galvan Research and Trading, says uncompromisingly that barring a miracle, it’s unlikely JJB will survive in its present form.

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