Debt-laden retailer JJB Sports claimed today (16 October) that its banks remained "supportive" and revealed that former Next boss David Jones was joining the board.

The UK company also confirmed reports that it has received a preliminary approach to buy its LifeStyle division, including its recently acquired Qube and Original Shoe Company chains.

There was no certainty that a deal would take place, JJB emphasised, promising to issue an update "when appropriate".

Newspaper reports have linked rival JD Sports with the possible acquisition.

David Jones, who was chief executive and later executive chairman of clothing retailer Next Plc, is joining JJB as deputy chairman.

The company said the role would allow him "to focus on the retail operations of the company".

JJB's spiralling losses had led the company's auditor to raise doubts about its ability to continue as a going concern, but the retailer has rebutted those claims, raising a GBP20m (US$34m) bridging facility with Kaupthing.

JJB added: "Constructive discussions are ongoing with JJB's other debt providers, HBOS and Barclays, who remain supportive, and JJB has appointed KPMG to advise on these discussions."

The retailer has also been hit recently by the withdrawal of credit insurance to suppliers by insurer Coface.

Emphasising that other companies faced the same issues, JJB said it remained "confident" in its trading relationship with its suppliers.

"I am confident that the steps we are taking will provide the stability to allow us to focus on our core activities," said Roger Lane-Smith, non-executive chairman of JJB.

"The group remains committed to these operations and is actively reviewing options for non-core assets.

"I am also pleased that David Jones has agreed to accept a new role. The company will benefit considerably from his enormous retail experience."

Meanwhile, JJB announced that group property director Barry Dunn is leaving the company with immediate effect "to pursue outside property interests".

The board has begun the search for a replacement, it added.