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24 December 2010
Last updated at 02:49 ET
JJB Sports has announced plans to raise £31.5m from shareholders, three weeks after warning it was likely to breach the terms of a key banking agreement.
The retailer said it was raising funds from major shareholders including Crystal Amber and the Bill & Melinda Gates Foundation Trust.
It added that its lender, Bank of Scotland, had agreed to waive tests that had been due in January.
JJB also announced chairman John Clare would step down with immediate effect.
He will be replaced by Mike McTighe, a former Cable & Wireless executive.
On 2 December, the company, which struggled during the downturn, warned it was likely to breach "certain financial covenants" in a £25m loan facility provided by its bank after worse-than-expected sales in recent weeks.
And in its latest statement, it said bad weather conditions had continued into the pre-Christmas period and had "significantly affected" sales.
Like-for-like sales for the period from 8 November to 19 December were down by 15.7% compared with the equivalent period last year.
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The retailer said it was raising funds from major shareholders including Crystal Amber and the Bill & Melinda Gates Foundation Trust.
It added that its lender, Bank of Scotland, had agreed to waive tests that had been due in January.
JJB also announced chairman John Clare would step down with immediate effect.
He will be replaced by Mike McTighe, a former Cable & Wireless executive.
On 2 December, the company, which struggled during the downturn, warned it was likely to breach "certain financial covenants" in a £25m loan facility provided by its bank after worse-than-expected sales in recent weeks.
And in its latest statement, it said bad weather conditions had continued into the pre-Christmas period and had "significantly affected" sales.
Like-for-like sales for the period from 8 November to 19 December were down by 15.7% compared with the equivalent period last year.
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