‘End the feud’ says Jones

RETAIL veteran Sir David Jones called for an end to the feud with rival Mike Ashley after being re-elected as chairman of JJB Sports.

Sir David, 66, said he has been surprised by the amount of vitriol that had come his way over a £1.5m loan he received from Mr Ashley for investments in a small technology company.

The retail veteran said he has been greatly heartened by the support of JJB staff and shareholders.

He told journalists after the annual meeting in Wigan: “The banks made it clear this business would have gone bust if i hadn’t taken the job. I now want to focus on getting this business right. I hope we can draw a line under all this nonsense.

“I’ve done nothing wrong and I just want to get this business back to being a success. I don’t have to defend myself and my sole reason for being around is to get this business back on track.”

Sir David said he planned to move to a part-time role once a new chief executive had been found.

“I’m 66 years old, I’m not 100% fit and I have had Parkinson’s disease for 27 years and when I am satisfied we have found the right person I’ll be happy to hand over to a younger person.”

He also had a message for Mike Ashley, the founder of Sports Direct – one of JJB’s major competitors. He said: “Mike Ashley is a very clever lad and has made a very successful business… Maybe we can sit down in a pub one day and have a pint. I’m a very ordinary bloke and so is he. All this nonsense is unnecessary.”

Mr Ashley, who had threatened to attend the meeting, did not appear. Instead two representatives asked questions on his behalf.

One of Mr Ashley’s representatives, Chris Emerson, raised the question of JJB’s low stock levels and why the company had refused “on good terms” to take stock from Sports Direct.

He asked if JJB was not “cutting off its nose to spite its face”.

In response to this Sir David said the stock lines on offer had not been ones suitable for JJB: “We have a clearly defined product policy. We are striving to achieve that.

“As the months go by our stock levels will improve, our figures will improve and our customers will know we are back in business.”

Former employee James Andrew, asked why the company had allowed Mr Ronnie to sell 29 “profitable” stores to Sports Direct.

Mr Andrew said: “Mr Ashley would not take over loss-making stores. He is not that kind of businessman.”

Sir David said that at the time the stores, which were sold with other lost-making outlets were considered a “drain on company resources”.

Mr Emerson then queried whether Sir David was guilty of a “friends and family recruitment policy.”

He asked when Sir David’s friend Colin Tranter, director of retail and product, had last held a management role in a significant business.

Sir David said he did not believe the question was relevant. As the meeting later came to a close Mr Emerson was escorted off the premises by a security guard.

Speaking after the meeting Sir David said the sports retail sector needed to be shaken-up by someone from outside.

He said the times taken to stock fast-selling lines and then replace them was too long. 

He added: “It’s like a pyramid really. At the top there is JD with their focus on fashion and at the bottom there is Mike Ashley who is focused on the mass market and discounted prices.

“I think there is room in the middle ground for us with our focus on sport and good brands at good value. There’s room for all three of us and I don’t want to challenge the other two.” 

Earlier JJB released a trading statement that showed like-for-like retail revenue at the group for the 25-week period to July 19 was 26.5% lower. The company said the slump in like-for-like sales was down to low stock levels.

The group said it expects a “gradual improvement” in sales as new stock is received, which should also improve gross margins. But it does not expect a significant improvement in sales until the end of the year because of six month lead times between ordering and delivery.

The company added that it has recently completed the sale of its remaining helicopter to DW Sports and its joint-venture interest in the ‘Kooga’ brand to JD Sports.

JJB said that long-serving non-executive directors David Beever and Roger Lane-Smith had retired from the board. Former Dixons group supremo John Clare will join the baord as senior independent non-executive director later this month.