JJB Sports, the embattled sportswear retailer, disclosed yesterday that it had paid an £8.3 million fee to earn a stay of execution from its banks last month.

Shares in JJB fell 3.6p, or 36 per cent, to 6.37p as it was revealed that instead of paying a £20 million bridging loan to Kaupthing, the collapsed Icelandic bank, on December 14, the company had paid the £20 million, pro rata, to all three of its lenders. Its net debt now stands at £60 million.

JJB also confirmed that it is facing stiffer interest on its banking facilities as a result of the postponement of payment of the bridging loan, which must be repaid by January 30.

Sir David Jones, who rescued Next from the brink of bankruptcy in the late 1980s, was appointed executive chairman of JJB this month. Peter Williams, the former chief executive of Selfridges, was appointed executive director.

The company said yesterday that its banks – Barclays, Kaupthing and HBOS – remained supportive of the company “under the leadership of the new executive chairman”.

Sir David’s first task at JJB is to sell the retailer’s health club business. Dave Whelan, the owner of Wigan Athletic Football Club and founder of JJB, was in negotiations to buy the 50 gyms last year.

The discussions ended in failure, but over the weekend Mr Whelan suggested that he was still interested in acquiring the business.

Sir David has also acknowledged that JJB may have to close Qube and Original Shoe Company, the loss-mak-ing lifestyle businesses acquired by Chris Ronnie, the beleaguered chief executive, from Sir Tom Hunter’s West Coast Capital and Mike Ashley’s Sports Direct, respectively.

It was revealed last week that Mr Ronnie’s 27.5 per cent stake in the retailer was in the hands of the liquidators of Kaupthing. Sources said that Mr Ronnie’s future would be decided this week.

JJB said last week that like-for-like sales at its retail division, which excludes the lifestyle businesses, were down 8 per cent over the Christmas period as it cut prices to raise cash. The company began to discount in late November and sold four stores to Sports Direct to keep the banks at bay.

Sports Direct’s 4.9 per cent stake in JJB is under investigation by the Office of Fair Trading, which is examining whether a possible tie-up between the two could hurt consumers.

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