Retailer JJB Sports says it is in talks to sell its TJ Hughes discount clothing stores less than two years after buying the business, after it reported lower first-half earnings.
Since JJB bought TJ Hughes in March last year for around £42 million, it has faced scepticism from investors who have urged Britain's biggest seller of soccer shirts to focus on its core business.
Analysts at Investec Securities estimate that the sale of TJ Hughes would raise £60 to £70 million for JJB.
Like-for-like sales at the core JJB business fell three percent in the first half to July 27th, and by 1.1 per cent in the first ten weeks of its second half.
Overall operating profit fell to £25.5 million in the first half from £34.3 million a year earlier.
The firm raised its half-year dividend by 33 per cent to three pence per share.