Landlords of JJB Sports have sent bailiffs into several of its stores after the chain failed to pay rents on them.

JJB owes £500,000 in rent on at least a dozen empty stores and landlords who have yet to be paid are said to be seeking a statutory demand, which gives the retailer 14 days to pay before they initiate bankruptcy proceedings, according to a report in Retail Week.

The sports retailer has been facing a cash squeeze since its accountants said there was material doubt on its ability to continue as a going concern and its credit insurer Coface has withdrawn cover from its suppliers.

A spokesman for JJB Sports said: "I am not going to deny the story.

"We've paid our rent in full and in a timely manner with all our operational stores, and we are in negotiations with a handful of stores where we have ceased trading."

The loss-making retailer is also facing a cash flow squeeze since it is in dispute with HBOS over whether it is in breach of covenants and credit insurer Coface has withdrawn insurance to its suppliers, meaning suppliers will demand cash up front for their goods or may stop supplying.

Icelandic investment firm Exista holds a 29 per cent stake in the chain alongside chief executive Chris Ronnie. JJB recently took a £20 million bridging loan from Kaupthing, the bank that has just been nationalised by the Icelandic government.

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