JJB making ‘good progress’ on turnaround

JJB Sports said it is making “good progress” with its turnaround plan.

In May chairman Mike McTighe admitted it could take five years to fix the struggling company after he unveiled pre-tax losses of £181.4m.

Today he said 38 of the 89 stores earmarked for closure following a company voluntary arrangement deal with landlords in March had been closed.

In addition eight shops have been refitted and costs have been trimmed from its supply chain and the retail support centre in Wigan where 68 of the 220 employees are being made redundant.

“The UK retail market continues to be extremely challenging and is likely to remain so for some time,” said the company in an update following its annual meeting. 

“Whilst working capital and cash management are the key focus, in the 22 weeks ended July 3 the overall financial performance of the business has been in line with the board’s expectations set at the time of the issue of our prospectus dated April 6 2011.”

Company secretary Richard Manning left the business today along with non-exec Alan Benzie. Chief financial officer David Williams will succeed Mr Manning and David Adams, senior independent director, will take over from Mr Benzie.
 
Mr McTighe said: “We are delivering on our business plan objectives and progress remains on track. Whilst we expect the retail environment to remain extremely challenging over the medium term, we are confident of delivering the full turnaround to ensure JJB’s future as a prosperous business.

“I would like to take this opportunity to thank both Richard Manning and Alan Benzie for their outstanding contributions to JJB during the recent turbulent times at the company.”