JJB Sports said it is likely to breach bank loan terms as a result of challenging trading conditions, which the company believes will be further exacerbated by the current adverse weather conditions.
The financial covenant likely to be breached is the £25million revolving facility provided by Bank of Scotland.
JJB said it is actively engaged in constructive discussions with BoS and its advisers in relation to the testing of the financial covenants, and more generally in relation to the future financing of the business.
It also confirmed it’s exploring further business restructuring options and considering alternative sources of finance.
BoS said it welcomes the steps taken by management and continues to be supportive.
JJB said the outlook for the full year remains uncertain, with like for like sales remaining below expectations.
