JJB Sports has announced that in an attempt to save 12,000 jobs, it will be selling off its health clubs.
Dave Whelan, founder of the sportswear retailer, confirmed his purchase of the fitness centres yesterday in what has become a £83.4 million sell off.
JJB is currently owes £60 million to lenders and the sale of the 55 clubs was an essential move to protect jobs, increase working capital and reduce debt.
Sir David Jones, chief executive of JJB, said: "We have worked very hard with our advisers and lending banks to propose a robust, solvent restructuring of the group that we believe is in the best interests of all of our stakeholders."
He added that this is the first step in securing the long-term future of the retailer.
Meanwhile, Whitbread has given jobseekers something to smile about recently, as the hotel and restaurant group announced the creation of 1,000 jobs as part of a new apprenticeship scheme.