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Jones charged with JJB recovery
JJB Sports has appointed Keith Jones as its new chief executive. Jones is currently group retail director at DSG – owner of Dixons and Currys – and he is scheduled to start work at the ailing sports retail chain on or before March 1, 2010. He replaces Chris Ronnie, who was dismissed earlier this year.
Jones, 45, is clearly a man who likes a challenge, as his appointment was announced in conjunction with the latest very poor financial results from JJB. The company has reported a 29% drop in sales, year on year, for the 20-week period until December 13, 2009.
The results cap a miserable year for the multiple retailer, which has struggled to compete against its big-box-budget rival Sports Direct. JJB reported a loss of Ł42.9 million over the first six months of 2009, which almost led to the company falling into administration.
In addition to a serious drop in stock levels, JJB’s troubles mounted even further this year with an investigation by the Serious Fraud Office over a suspected sports retail cartel with Sports Direct. While that investigation continues, Jones will be hoping he is taking control of a company that cannot sink any further, particularly as a further downturn would almost certainly lead to the end of the road for the retail chain.
Looking ahead, a company statement was short on festive joy: “We do not expect to receive our full stock package until the first quarter of 2010. Consequently we continue to be cautious about Christmas and New Year and expect that trading within the current environment will remain difficult.”
