26th Jan 2021 09:13
(Alliance News) - JD Sports Fashion PLC on Tuesday confirmed it is looking into the possibility of an equity raise to fund its expansion.
The FTSE 100-listed sportswear retailer said it is exploring additional funding options with a view to "increasing its flexibility to invest in future strategic opportunities", which could potentially involve a non pre-emptive equity placing. The company didn't put a figure on the potential raise.
On Monday, Sky News reported JD was in talks over an around GBP400 million share sale to fund its expansion.
JD pulled out of a deal in December to buy department store Debenhams, whose brand and website were eventually acquired by online fashion retailer boohoo Group PLC for GBP55 million in a deal that will result in all stores closing.
In December, JD bought San Jose, California-based Shoe Palace for USD325 million. Shoe Palace has 167 stores and will continue to be run by its founders, but will start to share ideas with JD's other US operation, JD Finish Line.
Shares in JD Sports were down 2.9% at 794.20 pence, while boohoo shares were down 1.1% at 344.59 pence in London on Tuesday.
By Zoe Wickens; [email protected]
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