Irish eyeing JJB Sports

Ireland's biggests sports shop chain could be looking to expand over the Irish Sea through the acquisition of cash-strapped JJB Sports.

Sky News reports that Stafford Group, a family-owned private company which owns the Lifestyle Sports chain in Ireland, is among those companies in the running to buy JJB Sports, which put itself up for sale last month.

Mike Ashley, owner of Newcastle United football club and the founder of sportswear chain Sports Direct, is widely reckoned to be the favourite to gain control of JJB, which failed last month to raise the funds it believes it needs for its umpteenth turnaround plan. However, subsuming JJB into Sports Direct might raise some competition concerns, and there are reportedly several other groups still in the running, including US outfit Dick's Sporting Goods, which made a strategic investment in JJB in March, the value of which it has already written off.

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"People close to the situation said that GA Europe and Hilco, two restructuring specialists, had also tabled offers. Dick's Sporting Goods, the US retailer which earlier this year bought a small stake in JJB, JD Sports and Hargreaves, another retailer, have all also lodged their interest," writes Sky News City Editor, Mark Kleinman.

JJB has already warned shareholders not to expect their shares to be anything once the sale process has gone through, but that did not stop the shares rising by more than a quarter to 0.36p on the morning the Sky News story broke.

JH