JJB.L Regulatory News (JJB)

9 Feb 2007 13:32

JJB Sports PLC09 February 2007 Reference: Decision of the House of Lords regarding the action taken against JJB Sports PLC by the Office of Fair Trading On 20 November, JJB Sports PLC ("JJB") sought leave to appeal to the House ofLords on certain aspects of the Court of Appeal's judgment on the action takenagainst JJB by the Office of Fair Trading ("OFT") (and partly upheld by theCompetition Appeal Tribunal) on the price-fixing of certain replica kit productsduring 2000 and 2001. JJB has now been advised by the Judicial Office of theHouse of Lords that its application for leave to appeal has been refused. JJB continues to maintain that it did not knowingly or willingly enter into anykind of price fixing arrangement and that the OFT's investigation and thesubsequent proceedings in the Competition Appeal Tribunal and the Court ofAppeal produced a grave injustice. JJB believes that the case has left the law in some confusion regarding retailer/supplier relationships, and that the courts have gone too far in extending thepotential scope of an indirect price fixing agreement or concerted practice. The Board of JJB is now left with no alternative other than to make a fullprovision in its accounts for the amount of the penalty. The amount of thepenalty imposed by the Competition Appeal Tribunal together with interestthereon, will be approximately £7.7 million at 28 January 2007, which comparesto JJB's provisions of £3.9 million in its accounts at 29 January 2006;therefore an increase in provisions of £3.8 million will be made in JJB'saccounts for the 52 weeks ended 28 January 2007. For further information, please contact: Tom KnightDavid Greenwood 01942 221400JJB Sports Plc Richard FarnsworthCharlotte Barker 020 7379 5151Maitland This information is provided by RNS The company news service from the London Stock Exchange