JJB Sports looks forward to future after disastrous year
JJB Sports yesterday revealed the full horror of the past year, posting a full-year loss of £189.2m.
Executive chairman David Jones, the man who formerly led the clothes retailer Next in markedly better times, admitted that under its previous management the group came dangerously close to insolvency.
And even at the moment nervousness over the group’s financial standing is affecting custom and suppliers’ willingness to deal with the group. Sales in the period until the middle of May are down 23 per cent on a like for like basis.
Jones is nevertheless optimistic, saying that since becoming executive chairman in January he has restored the group’s financial stability and put it on a growth path.
Jones is busy refocusing JJB as a mid market sports retailer, having sold off its health clubs business and a number of its poorly performing stores.
But he still has much to do to restore the group’s financial footing and analysts at Investec, for example, expect a rights issue to secure the company’s longer-term future.
Analysts at Citi think the company’s future is still uncertain.