Sporting goods retailer JJB Sports says trading conditions remain "extremely challenging", with like for like sales below its expectations, as freezing temperature hit pre-Christmas spending in the UK.

The UK firm is also struggling to meet the terms of a major bank loan.

In a statement to the London Stock Exchange, the company said the situation "will be further exacerbated by current adverse weather conditions".

The statement added: "At this stage, with two months of important trading remaining before the year end, covering the pre-Christmas and New Year sale periods, the outlook for the full year remains uncertain.

"The performance of the six transformed stores continues to be encouraging, with sales 11% above the company average and money margin 21% above the company average, measured in the period from 1 November 2010 to 28 November 2010."

JJB also said that in light of continued difficult trading conditions, it was now likely to breach certain financial covenants in its GBP25m (US$40m) revolving facility provided by Bank of Scotland when they are next tested at the end of January 2011.

JJB added: "The company is actively engaged in constructive discussions with BoS and their advisers in relation to the testing of these financial covenants and more generally in relation to the future financing of the business.

"Separately, and again as highlighted in the company's half year results, the company is exploring further business restructuring options and considering alternative sources of finance.

"BoS have welcomed the steps taken by management and continue to be supportive."