KPMG has been appointed to handle the sale of beleaguered retailer JJB Sports.

The appointment follows several rocky years for the chain that has had around £200m injected into it in numerous bids to revive its flagging fortunes.

Some of the shareholders that could be left high and dry include US retailer Dick's Sporting Goods, Bill & Melinda Gates Foundation and Harris Associates.

JJB has been hit by the wider economic slowdown and fierce competition from high street rivals and its directors yesterday admitted that they didn't believe the company could raise enough funds to stave off a sale.

Following news of the announcement, its shares plummeted by over 80% - 1.98p - to 0.39p. Such a seismic fall led to a revaluation of the company of £1.6m compared to £500m in 2010.

Investors in the business had been growing increasingly unhappy with the slow turnaround at the company, which has seen it twice dodge the administration bullet. It was rescued from the brink of collapse as recently as April this year.

David McCorquodale, KPMG's corporate finance partner leading the sale process, said he 'anticipates significant interest' in the sale.

JJB's current woes bring to a head a story that began in 1971 when ex-Blackburn Rovers footballer Dave Whelan kick-started the business with a solitary store. It was floated on the stock market in 1994, before he sold it on for and banked a personal fortune, several years later.

JJB currently employs 4,000 staff across its 180 stores and Wigan-based head office.