Invesco is planning to seize control of JJB Sports in a last ditch attempt to turnaround the retailers performance.
The firm has tabled a bid to buy out JJB’s outstanding debt from Lloyds Banking Group.
According to The Sunday Times, a deal was discussed at a company board meeting last week.
Invesco Perpetual income fund manager Neil Woodford holds a large portion of JJB in his flagship £11.7bn High Income and £9.1bn Income funds.
JJB has been struggling following a slump in sales and a series of profit warnings. The firm made a £101m loss in 2011.
Invesco – which owns half of the firm’s shares – is among a raft of shareholders to plough money into the business over three fundraising. The most recent fundraising saw Dick’s Sporting Goods provide funding alongside the firm’s leading investors.
Invesco and Dick’s are expected to put together the restructuring plan.