Bank out of fashion with JD as loss-maker is sold

RETAILER JD Sports Fashion is selling its loss-making fashion retail chain Bank.

The Bury-based group said the disposal, to a subsidiary of Hilco Capital, would allow it to focus investment in better-performing parts of the business, namely the JD Sports brand.

Executive chairman Peter Cowgill said: “We have decided that we must prioritise future investment in the Sports fascias and consequently we believe that the sale of Bank is in the best interests of the group. We shall continue to support the broadest possible range of fashion brands within the group.”

Financial terms were not disclosed but JD said the deal “should result in a substantial recovery of its intercompany loan, the exact quantification of which will be confirmed by completion accounts in due course.”

Bank was the biggest brand in its fashion business with 88 of the 147 stores. It recorded a loss after exceptionals and before tax of £8.1m in the year ended February 1 and had gross assets of £51.7m. The overall Group net assets writedown as a result of the sale will not be material to the Group net assets position.

JD added: “The remainder of the group’s businesses have continued to trade in line with our expectations during the second half of our financial year and subject to a satisfactory performance against strong comparatives in the key Christmas trading period the group remains well positioned.”