The incestuous sports clothing industry has just got even more involved. This morning JD Sports said it had snapped up a 10% stake in arch-rival JJB Sports for £8 million.

The move came amid reports that JJB's founder, the Wigan Athletic owner Dave Whelan, is working on a bailout of the company he set up in 1977. He is in talks to buy JJB's 50 health clubs, providing a financial lifeline to the company.

JD boss Peter Cowgill said the stake in JJB was a "strategic investment" made because of its "important place in the performance sports retail market".

Mike Ashley, the founder and majority owner of Sports Direct, also has a stake in JJB and will be eyeing any moves with interest.

Although the three companies are similar, they have their niche. JJB is aimed at athletes looking for kit, JD Sports is fashion clothing with a sporty look, while Sports Direct is for the budget end of the market, selling cheap goods from often vast superstores.

Whelan bowed out of JJB last year when he sold a 29% stake for £190 million to Chris Ronnie, now the chief executive. Ashley, currently struggling to sell Newcastle United after an unhappy period as owner, bought a 5% stake in JJB last month.

The relationship between the companies has not always been cordial. In 2003 Ashley blew the whistle on a price-fixing ring involving JJB and several other sports-goods chains. Whelan told Ashley: "There's a club in the north, son, and you're not part of it."

JJB shares are down from over 150p a year ago. Today they added ¼p to 32¼p.