JJB Sports subsidiaries to close with loss of 438 jobs

Two firms owned by JJB Sports have been closed today resulting in the loss of 438 jobs.

The Original Shoe Company (OSC) and Qube chains were placed into administration last week after failing to find buyers the businesses. OSC sells branded clothing and trainers, while Qube is a branded footwear specialist.

The divisions have experienced hefty losses amid the economic slowdown, which are expected to push JJB £10 million into the red.

JJB is undergoing a restructure led by executive chairman Sir David Jones. In an attempt to reduce the company’s debts, Jones is negotiating the sale of its gyms.

JJB’s lenders, which include Barclays, Kaupthing and HBOS, have allowed the company some breathing space while it attempts to renegotiate the terms of its loans.

In the last year, shares in JJB have lost over 90% in value.

The store closures follow on from the announcement that Zavvi’s administrators is to close the rest of its stores this week resulting in 446 job losses.

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