JJB appoints ex-Kitbag chief as losses more than double

BELEAGUERED high street sportswear retailer JJB Sports revealed that pre-tax losses rose by 177% in the six months to July 31 as it suffered a further 23% decline in sales to £142.4m.

The Wigan-based company said that like-for-like sales dropped by 17.7% in stores that remain open. Moreover, despite raising a further £65m from shareholders earlier this year, the company finished the six-month period with net funds of just £17m.

The company argued that it was making progress with its restructuring, though, announcing that it had re-laid 86 stores and “improved basic retail disciplines”. It also announced the appointment of Kitbag founder Ray Evans to the new post of Director of Football.

Chief executive office Keith Jones said the company’s results had been impacted by the closure of unprofitable stores and the sell-off of obsolete stock.

“Despite the tough trading climate, the business is in better shape than of late and has the opportunity to develop the JJB proposition into a truly authentic sports retailer over the next few years,” he said.

“Our re-sized store portfolio and other cost-saving initiatives have allowed us to manage the business and maintain tight financial controls.”

He said that Evans’s appointment would bring in someone with “an impressive track record”.

“Ray has unrivalled experience in the sports retail markets and has worked with some of the largest sports clubs, on an international and national level, to enhance their retail offering.”

JJB currently operates from 195 stores and it employs more than 4,500 people.