Following an OFT investigation into the sports retail market, it has been announced that the Serious Fraud Office (SFO) has now begun its own investigations into JJB Sports and Sports Direct.<\/p>\n
JJB Sports revealed that it had stated its concerns about possible cartel activity in its market to the OFT which in turn has been granted immunity from any financial penalty in the event that competition rules have been broken.<\/p>\n
The investigation follows an approach made by JJB to the OFT on January 30, following the suspension of its then chief executive Chris Ronnie. JJB asked at that time;<\/p>\n
\u201cfor immunity pursuant to the OFT\u2019s leniency programme in relation to a suspected agreement or concerted practice to dampen competition in the sports retail market in the period from 8 June 2007 to 25 March 2009, being the period in which the former chief executive, Mr Christopher Ronnie, was employed by the company.\u201d<\/p>\n
JJB did not name any other individuals or companies in its statement today. However, there was frequent speculation during Ronnie\u2019s tenure about the nature of his relationship with Sports Direct and its founder Mike Ashley for whom Ronnie formerly worked.<\/p>\n
OFT officers visited JJB at its Wigan head office this morning. It may be \u201csome years\u201d before the OFT investigation is complete. The retailer said in a released statement<\/p>\n
\u201cthat in the event that any subsequent immunity agreement, is withdrawn as a result of JJB\u2019s non-compliance with the conditions or as a result of JJB\u2019s evidence being materially undermined in particular circumstances, and an infringement decision is issued by the OFT, JJB \u201cmay be liable for a fine from the OFT of up to a maximum amount of 10% of the Group\u2019s turnover\u201d.<\/p>\n