JD Sports Fashion PLC (LON:JD.) has confirmed the directors of its camping arm Go Outdoors had filed a notice to appoint administrators.
The retailer said the notice creates an immediate moratorium around the company and its property that lasts for ten business days.
READ: Two sides of post-pandemic retail: RBC downgrades JD Sports, upgrades Kingfisher
In this period, creditors cannot take legal action or continue with any existing legal proceedings against the company without the court's permission.
Administrators have not been appointed yet.
Weekend media reports revealed the sports chain filed the notice on Friday, putting over 2,000 jobs across 67 stores at risk.
Go Outdoors explored other options, including a sale, but Sky News reported that JD Sports hopes to maintain control of its subsidiary, bought four years ago for £112mln.
House broker Peel Hunt said store closures may be on the cards, since JD was hopeful the current year could see recovery for the outdoors chain, but the pandemic decimated sales - with online accounting for only 10% of revenue.
"Go Outdoors is a small part of the group, and while we don’t want to underplay its administration, it shouldn’t impact the group multiple," analysts commented.
Shares dipped 1% to 643.2p early on Monday.
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