Trainers run out of steam for Jacobson

A FALL in the worldwide demand for trainers has knocked sales at the Jacobson Group.

The Rossendale-based business, that owns the Gola brand, saw turnover for the year to September 2008 drop 4% to £53.9m according to newly-filed accounts.

The business recorded a pre-tax loss for the year of £2.3m, compared with a profit of £1.4m last time.

These figures forced the group to renegotiate banking facilities after breaching covenants. The new deal was completed in December 2008 following a cash injection by the Jacobson family which controls the group.

A total of £4.9m was put into the business by the family and extra capital was raised from the sale of a property and a loan from a former shareholder.

In their report the directors blamed the sales drop on lower demand for trainers and a “general fall” in other areas within the UK.

Finance director David Green told TheBusinessDesk the firm was now under less pressure because the family’s investment had cut its bank borrowings.

“In retail terms we have got a friendlier landlord now,” said Mr Green. He added: “When the refinancing happened the whole banking sector was very volatile. The fact the family have put money back into the business just shows how confident they are in its future.”

The business, which employs 300 staff, sells footwear, clothing and bags to major High Street retailers as well as independent shops. In addition to Gola it also owns the Ravel brand and Nottingham-based Lotus, the oldest UK footwear make.