JJB SPORTS – once the biggest sports retailer in Britain – has admitted defeat as it announced plans to appoint administrators.
The move is likely to promote debate over how it has been managed in recent years.
As many as half of its 180 stores are expected to close in a so-called pre-pack sale process, threatening a large number of the 4,000 jobs at the firm. Branches in Darlington, Stockton and Durham are among those at risk.
Mike Ashley ’s Sports Direct business has been linked with a bid for some of the JJB stores.
JJB’s story of dramatic rise and fall began when former Blackburn Rovers footballer and Wigan Athletic owner Dave Whelan bought a single store in Wigan in 1971 before an aggressive expansion drive saw it climb to more than 400 stores by 2007.
In 2007, Mr Whelan sold his family’s holding for £190m to a joint venture formed by Icelandic financial group Exista and Chris Ronnie, who previously worked at Umbro and Sports World owner Sports Direct.
The group was hit hard by the squeeze on consumer spending triggered by the financial crisis and by the stellar performance of rivals Sports Direct and JD Sports.
By late 2008 it was in a battle for survival.
The group has been through six chairmen in the past four years, covering a period in which it also incorrectly applied VAT to children’s clothing, resulting in a £5m tax liability. And despite numerous fundraisings and closing half of its stores, it has been unable to revive fortunes.
JJB’s shares were suspended yesterday pending a further announcement.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel