Comment: The buck stops at the top

IT’s always unfortunate when relationships sour, be it in business or in affairs of the heart.

Advising a crestfallen colleague or heartbroken friend to “put it down to experience” or “just move on” will rarely be heeded until the pain has gone away.

The continuing bitter fall-out, being played out in the media between former JJB Sports chief executive Chris Ronnie and the current executive chairman Sir David Jones is a case in point.

Email exchanges dating back several years were released to newspapers this week by Mr Ronnie’s PR team, which to say the least don’t portray Sir David in a  good light.

But no matter what money Mr Ronnie spends on trying to restore his reputation or dent Sir David’s, he can’t hide the fact that under his leadership, a hitherto successful business developed huge financial problems.

Two years ago when he took over from Tom Knight as CEO, JJB’s share price was more than £2. When he was suspended in April this year it was 6p.

In 2007 the company made a £38.5m profit. This year it reported a £189m loss.
As well as a crippling recession, mistakes were clearly made, not just by Mr Ronnie, but by the board as well.

Failure by his colleagues to stop Mr Ronnie’s attempt to move JJB upmarket with the disastrous acquisitions of the loss-making Qube and Original Shoe Company, proves this. Not to mention the wisdom of the board sanctioning the purchase of a second helicopter.

Few right-minded people take any pleasure in JJB’s troubles or in Chris Ronnie’s wounded pride.

But at the end of the day, the facts alone speak volumes.

As with airline pilots, football club managers or ship’s captains, the buck stops with the top man, and Mr Ronnie should accept this and move on.