JJB Sports, the beleagured retailer has announced a suspension of its shares and is to enter into administration with KPMG expected to oversee the process.

The sports clothing company originally hired the Big Four firm to negotiate a sale of its business last month and is at present reviewing the offers submitted by 'a number of selected parties'.

The front-runner is believed to be Sports Direct, owned by Newcastle United FC's chairman Mike Ashley.

In a statement released today (24 September) JJB Sports explained that it now does 'not expect to receive an offer for its shares' and has ceased trading on the London Stock Exchange's AIM market 'with immediate effect'.

The high-street chain currently employs close to 4,000 staff in 180 stores across the country, but the likelihood of at least some job losses is inevitable.

Julie Palmer, partner at Begbies Traynor, said: 'The ailing retailer has faced a number of hurdles which have had a huge impact on the business: operating in an increasingly competitive sector with the rapid growth of competitors such as Sports Direct and JD Sports, as well as tough retail conditions.

'A sale is likely to feature a 'cherry picking' approach for the more profitable store leading to the closure of more than a half of its outlets and the loss of more than half of the 4000 jobs. As the workforce if predominantly young, this will be another blow to youth unemployment figures.'

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