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Troubled leisurewear retailer JJB Sports got support from an unlikely source today — Bill Gates.
The software billionaire and world's richest man revealed that he has a 3% stake in the company.
The Bill & Melinda Gates Foundation — the charity which manages his fortune — has had an undisclosed stake for sometime.
This stake was increased two days ago to take it over the level at which holdings must be declared.
JJB shares jumped 3p to 28p on the news.
Traders said Gates's backing makes it much more likely JJB will be able to raise fresh funds from investors to support its revival.
The company flirted with bankruptcy earlier this year, but lately is on a sounder footing after the arrival of retail guru Sir David Jones as chairman.
JJB wants to raise £50 million from a rights issue, which had looked ambitious against a market capitalisation of £62 million. It could now fly, especially if Gates takes the chance to further increase his influence over the company.
How he came by JJB is not clear. One theory is that he was persuaded to take a stake by David Herro, a Chicago-based investor who himself has a 13% stake in the company.
Gates previously bought into another troubled retailer, Carpetright, where Herro also has a holding.
