JJB in talks with banks

British sportswear retailer JJB today warned it was likely to violate the terms of a £25m (€29.6m) loan as trade at the embattled company continued to deteriorate.

The group, which employs 6,300 staff, said it was in "constructive discussions" with the Bank of Scotland about the breach - due at the end of January - and the future financing of the business. It is also seeking alternative sources of finance.