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JJB reacts to losses
Sportswear chain JJB Sports has reacted to a fall in profits last year by closing 72 of its 420 stores, which is almost one in six. It's a total loss of about 800 jobs and, analysts claim, reflects a general downturn in high street sales overall. Of course, it has not been helped by the England team's failure to qualify for Euro 2008, but this is far from the only reason.
JJB has reported a 28 per cent drop in underlying profits last year, to £34.3million. 2007 results include the cost of the announced store closures, with pre-tax profits down 72 per cent to £10.8million.
The closures will affect high street stores and out-of-town 'big box' outlets, will cost the company £25million; 400 of the affected 1200 staff will be redeployed elsewhere in the group.
Chief Executive Chris Ronnie is reported to have said of the closures: "They are being closed because they are not profitable and are a huge drain on the business."
Since taking over as CE in 2007, Ronnie has focussed on clearing old stock to replace it with higher-margin 'own brand' goods.
