SHARES in JJB Sports plunged another 30.7% as investors awaited the conclusion of sale talks that are expected to hand much of the company's estate to Sports Direct.

JJB's shares closed down 0.12p at 0.26p while those of Sports Direct rose 5.5p or 1.6% to 344.5p.

Wigan-based JJB, which has 180 stores in the UK and 4000 staff, has been struggling for years in the face of a high street slowdown and competition from rivals.

The most likely scenario is a pre-pack administration with Sports Direct, headed by Newcastle United owner Mike Ashley, taking on the most profitable stores.

However, JD Sports and American firm Dick's Sporting Goods, are also thought to be in negotiations with accountant KPMG which is overseeing the sale.

Private investment firm OpCapita, French sporting goods retailer Decathlon and private equity firm Better Capital, founded by venture capitalist Jon Moulton, have also been linked to the company.

Any sale is expected to lead to a large number of JJB stores closing.

The company has 33 outlets in Scotland and recently ended its merchandise deal with Rangers Football Club, which hooked up with Sports Direct.

Any deal could be investigated by the Office of Fair Trading on competition grounds depending on which stores are bought.

Administration is likely to leave shareholders including the Bill & Melinda Gates Foundation and Invesco Asset Management with worthless stakes.

The original JJB store in Wigan was established by JJ Broughton in the early 1900s and was bought by JJ Braddock. Former Blackburn Rovers footballer and Wigan Athletic owner Dave Whelan acquired it in 1971.

By the time JJB floated on the stock exchange in 1994 the business had 120 stores.

Its acquisition of Sports Division from Ayrshire entrepreneur Sir Tom Hunter in 1998 made JJB the largest sports retailer in the UK, and by 2007 it had more than 400 stores.

This number has been more than halved during the economic turmoil of the past few years.