FOUNDER of the JJB Sports chain Dave Whelan is reportedly poised to buy back the health clubs arm of the ailing sportswear business.

The proposed £70m deal will put JJB's finances on a surer footing as the deadline over a £20m loan comes today.

Mr Whelan, who set the Wigan-based retailer up in the 1970s but sold his stake in 2007, has been granted exclusivity over the 52-strong gym chain, according to reports.

The health clubs have remained profitable, while JJB's retail outlets suffer from the high street downturn.

Mr Whelan - who is understood to have beaten off interest from rival chains such as Fitness First and LA Fitness - is said to be planning to rebrand the gyms as DW Fitness and is also reported to be buying 51 adjoining JJB stores, to be renamed DW Sports. The sale should help secure the jobs of some 12,000 staff at JJB, which has debts of around £60m. JJB declined to comment.

Late last year the firm agreed with Barclays, HBOS and Icelandic bank Kaupthing that a £20m bridging loan from Kaupthing need not be repaid in full by mid-December.

JJB instead paid out £20m to be shared between the three banks and said the arrangements had been extended until today - subject to the lenders remaining satisfied with progress in selling the health clubs.

It is thought the loan period will now be extended yet again.

A sale of the operation would raise much-needed cash for JJB, which put its struggling lifestyle division into administration in February, with the loss of more than 400 staff.

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