JJB Sports considering equity fundraising

LONDON (Reuters) - British retailer JJB Sports (JJB.L) is considering an equity fundraising as one of a number of ways to provide extra capital, it said on Saturday.

The firm was responding to a report in the Times newspaper that it was looking to raise at least 50 million pounds in a placing and open offer of shares at 12 pence each -- a 61 percent discount to Friday's closing price of 30.75 pence.

"The board confirms that as highlighted in its recently published annual report and accounts for 2009 it is reviewing a range of possible options to provide additional capital," it said in a statement.

"These include the disposal of further non-core assets, an extension in the maturity date of the company's working capital facility, beyond September 2010, and a possible equity capital raising by way of a placing and open offer."

JJB also said the lease assignment process in relation to the sale of its fitness clubs business to founder Dave Whelan was ahead of plan.

Some 41 of the 53 leases had been assigned to Dave Whelan Sports Ltd and about 17.6 million pounds of a total 33.9 million pounds deferred consideration for the deal had been released from an escrow account, it said.

It also said it expects to repay a loan to Barclays (BARC.L) ahead of its existing maturity date of August 31.

JJB posted an annual loss and plunging sales in May, but also said it had agreed a company voluntary arrangement -- a rarely used insolvency process -- to help it to survive.

(Reporting by Mark Potter, Editing by Peter Blackburn)