Struggling sportswear chain JJB Sports has put itself up for sale after it failed to raise the funds it needed to attempt a turnaround of the business.
It warned investors that debt levels meant any purchase could still mean shares would become worthless.
In July the company announced that a deterioration in trading and the continuing poor macroeconomic environment was putting more pressure on the firm to raise more money.
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Since this announcement, in the six weeks ended 26 August 2012, like for like sales fell by 3.3% and like for like cash margin dropped by 9.5%.
JJB said that after discussions with strategic investors its directors did not believe that the company would be able to raise the level of funds required to implement the turnaround.
"As a result, the board has decided to conduct a formal sale process of the company and now wishes to invite offers to support further investment in the company, which may result in a sale of the company or its assets," it said.
The company will conduct the formal sale process through its adviser, KPMG, who, it said, should be contacted by any interested parties.
"There can be no certainty that a proposal will be forthcoming or that an offer will be made for the company or as to the level of any proposal or offer that may be made," the statement said.
It gave a stark warning to investors that given the level of current debt within the company, "there can be no assurance that any proposal or offer that may be made would attribute value to the ordinary shares of the company".
As at 28 August 2012 net bank debt was £16.5m. In addition, the Company has £18.75m of convertible loan notes outstanding and has also drawn down £1.1m under the trade loan facility.
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