Investors have urged JJB to focus on sports clothes
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JJB Sports has sold its discount store group TJ Hughes to a management team in a deal worth £55.8m ($94.3m).
The sale comes just two years after the UK sports retailer bought the chain for £42.9m, and follows investor demands for JJB to focus on its core business.
Analysts had estimated that any sell-off of TJ Hughes would raise between £60m and £70m.
However, JJB said it did not expect the disposal to have any major impact on its full-year results.
Debt reduction
TJ Hughes sells clothes, homeware and small electrical goods, and is based mainly in the north west of England.
JJB said it planned to use the proceeds from the sale to cut its debt in the run-up to the key Christmas trading season.
In October, JJB unveiled a fall in half-year profits to £24.2m, from £32.8m one year earlier.
A month earlier, the firm was hit by a £8.3m fine from the Office of Fair Trading following an investigation into price-fixing of replica shirts.
JJB was one of 10 firms to be fined, along with Manchester United football club and sports clothing manufacturer Umbro.
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