Authorities start sport retail probe
SPORT retailers JJB Sports and Sports Direct are at the centre of a double-pronged probe into allegations of anti-competitive behaviour that could see the companies and their directors landed with heavy fines and even jail time.
Separate investigations are being conducted by the Serious Fraud Office (SFO) and the Office of Fair Trading (OFT), which yesterday carried out a raid on both firms’ offices.
The SFO’s criminal inquiry centres on suspected offences under the Fraud Act and the Enterprise Act, which includes legislation on price-fixing. The matter was originally referred to the SFO by the OFT, which itself is carrying out an investigation into possible breaches of UK and European Commission competition law.
JJB yesterday confirmed it blew the whistle on the activities on 30 January this year, just 10 days after it suspended ex-chief executive Chris Ronnie.
The firm has negotiated immunity from the OFT in return for full co-operation, though it could still be charged under potential SFO findings.
The allegations relate to the period between June 2007 and March 2009, falling under Ronnie’s tenure.