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Troubled retailer JJB seeks finance.

SPORTSWEAR retailer JJB yesterday warned it was likely to violate the terms of a pounds 25m loan as trade at the embattled company continued to deteriorate.

The group, which employs 6,300 staff, said it was in "constructive discussions" with the Bank of Scotland about the breach - due at the end of January - and the future financing of the business. It is also seeking alternative sources of finance.

The warning came as JJB said sales were below expectations and the heavy snowfall and freezing temperatures sweeping the country could further hurt performance.

A bout of promotional activity at rival SportsDirect has also added to JJB's woes, one City analyst warned. With just two months of Christmas and New Year trading remaining, the company said the full-year outlook remains uncertain.

The Wigan-based retailer, which operates nearly 250 stores, recently revealed that a major promotional drive had failed to deliver the results it hoped for.
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Title Annotation:Business
Publication:Daily Post (Liverpool, England)
Date:Dec 3, 2010
Words:153
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