JJB board backs Jones in Ashley loan row

THE board of JJB Sports has released a statement of “unanimous support” for executive chairman Sir David Jones, who is embroiled in controversy over a £1.5m loan he took from Mike Ashley, the founder of arch competitor Sports Direct.

In a statement, JJB’s board says it was informed of the loan – agreed before former Next boss Sir David had joined JJB as a non-executive director – and that the matter is closed.

Sir David has also agreed to repay the money as “soon as possible.”

Yesterday he had to deny claims he had asked Sports Direct executives to distort the facts about the loan when faced with inquiries from journalists.

JJB’s statement says the loan was made by Mr Ashley – the controversial owner of Newcastle United football club – for investment in a business called Advanced Network Technologies, which is majority-owned by the Jones family.

It said executive directors, legal and financial advisers had been told about the loan earlier this year, and had concluded the matter was a private arrangement, and one not requiring public disclosure.

“The board is clear that the arrangement, that was initiated before Sir David joined the Company as a non-executive director, has not given and does not give rise to any conflict of interest.

“The board has been informed by Sir David that he intends to repay the loan as soon as possible in order to avoid further distraction for the company and its business.

“The board considers the matter closed,” the statement said.

His colleagues  added their unanimous support for the veteran retailer and expressed appreciation for the job he is doing to revive JJB’s fortunes.

“The board believes that he is the right person to lead the company through the next phase of the group’s restructuring and to turnaround its sports retail business.”

Wigan-based JJB has said it is considering an equity fund-raising of around £50m to secure its medium-term future.