BILLIONAIRE and Sports Direct International boss Mike Ashley is reportedly mulling a takeover of the health and fitness chain owned by his struggling rival, JJB Sports.
Mr Ashley has hired investment bank Lazard to handle the sale, according to a report.
The gym chain is being sold in a move to raise cash to pay JJB’s lenders, and it is hoped the business will fetch as much as £50m.
Other potential bidders include JJB’s founder, Dave Whelan, and the world’ biggest operator, Fitness First. However the board is facing an investor revolt from Cheshire-based businessman Paddy Keely, who owns three per cent of the group. He has accused the board of needlessly putting the gym business up for sale and allowing its lenders to 'pillage obscene fees' from it. He believes that a sale of the gyms will ultimately force the group into administration.
Last Friday, JJB was granted an extension by its main lenders Barclays, HBOS and Kaupthing to allow it to further defer loan repayments.
Meanwhile, another report claimed that JJB’s beleaguered chief executive, Chris Ronnie, will be dismissed from his position this week following an investigation into a controversial share sale.
The investigation was ordered after a company jointly owned by Mr Ronnie, who has already been suspended, sold a 27.5 per cent stake in JJB without disclosing the deal, which is against City rules.
It is understood that the investigation has concluded that Mr Ronnie must leave the group.
The report said that Peter Williams, former boss of Selfridges and JJB board member, could be a successor.
Tweet