Euro 2012 sales blow for JJB as chairman prepares to go
JJB Sports, the North West retailer, attempting to fight back after a traumatic last three years, has suffered a setback in its recovery after poor summer sales.
Shares plunged by 26% after the Wigan company said a hoped-for and expected pick-up in activity around the Euro 2012 championships last month, had failed to materialise. Like-for-like sales in the 22 weeks to July 1 are down 8%.
JJB said an experienced new executive, Bob Corliss, would join the board initially as deputy chaiman, to give the turnaround new impetus. He will then take over from chaiman Mike McTighe on September 1.
In its disappointing trading statement JJB said an “expected peak” in replica football kit sales during May and June had not lived up to the “extent anticipated.”
The wettest June for many years has also dented JJB meaning sales have”fallen materially short of expectations”.
Commenting on the management change, out-going chairman Mike McTighe – who has led JJB through several refinancings, a second CVA deal with retail landlords and most recently secured crucial investment from US retail group Dick’s Sporting Goods – said: “I am excited that we have attracted someone of Bob’s calibre and experience to lead the company through the next phase of its turnaround.
“His deep US and European sports retailing background is exactly what we require right now.”
Chairman designate Bob Corless, who has 30 years of retail experience in the US, including nine years leading The Athlete’s Foot, the world’s largest franchisor of athletic footwear with over 600 stores, said: “JJB has been through some difficult times yet it is clear that there is a real market opportunity for a national authentic sports retailer here in the UK.
“JJB can be that retailer and I’m energized by the prospect of leading the company through the next phase of its turnaround.”
