JJB said discussions were still at a relatively early stage, following a review of the group's non-core businesses.

TJ Hughes - which was bought by JJB for £42m only last year - sells clothes, homeware and small electrical goods and is based mainly in the north west of England.

JJB also announced a fall in half-year profits to £24.2m, from £32.8m in the same period last year.

Like-for-like sales - which strip out the effects of new store openings - fell 3% at its core sports stores compared with 2002.

JJB said this was due to fierce competition in the market and also because 2002's figures were boosted by sales of football shirts during last year's World Cup.

Price-fixing fine

In August, JJB was fined £8.3m by the Office of Fair Trading following an investigation into price-fixing of replica shirts.

JJB was one of 10 firms to be fined, with Manchester United and Umbro also being penalised.

The company has appealed against the decision, and has said it is confident it can get the decision overturned.

"No provision has been made in respect of this fine on the financial accounts as, on the basis of advice received, the board believes that the appeal will be successful," JJB said.